SECURITIES AND EXCHANGE COMMISSION
UNDER
THE SECURITIES ACT
OF 1933
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Pre-Effective Amendment No. |
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Post-Effective Amendment No. (File No.
333-________) |
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UNDER
THE INVESTMENT
COMPANY ACT OF 1940
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Amendment No. 243 (File No. 811-07355) |
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(Check appropriate box or boxes)
RIVERSOURCE VARIABLE ACCOUNT 10
(Exact Name of Registrant)
RiverSource Life Insurance Company
(Name of Depositor)
70100 Ameriprise Financial Center, Minneapolis, MN 55474
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code (612) 678-5337
Nicole D. Wood, 50605 Ameriprise Financial Center,
Minneapolis, MN 55474
(Name and Address of Agent for
Service)
Approximate date of proposed sale to the public: as soon as practicable following the effective date
of this Registration
Statement.
The Registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8 (a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission acting pursuant to Section 8 (a) may determine.
The information in this Prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This Prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
Prospectus
[PortfolioEdge Advisory Variable Annuity]
Individual Flexible Purchase Payment
Deferred Variable Annuity
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RiverSource Life Insurance Company (RiverSource Life) |
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70100 Ameriprise Financial Center Minneapolis, MN 55474 Telephone: 1-800-862-7919 (Service Center) ameriprise.com/variableannuities RiverSource Variable Account 10 |
This prospectus contains information that you should know before investing in the [RiverSource PortfolioEdge Advisory Variable Annuity] (the Contract), an individual flexible purchase payment deferred variable annuity issued by RiverSource Life Insurance Company
(“RVS Life”, “we”, “us” and “our”). All material terms and
conditions of the Contract, including material state variations, are described in this prospectus.
The contract allows you to invest your money in (i) available subaccounts investing in shares of underlying funds, each
of which has a particular investment objective, investment strategies, fees and expenses; or (ii) the special dollar cost averaging (“Special DCA”) Fixed Account (only available during the first 180 days from the contract issue date) which earns fixed interest at rates that we adjust periodically and declare when you make an allocation to that account.
Additional information regarding each investment option is provided in Appendix A – Investment Options Available Under the Contract.
The contract is a complex investment and involves risks, including loss of principal. The contract is not a short-term
investment and is not appropriate for an investor who needs ready access to cash. Surrenders could result in taxes and tax penalties. Surrenders from the contract could also reduce the amount of certain optional benefits by more than the
dollar amount of the surrender, and such reductions could be significant.
An investment in the contract is subject to the risks related to RVS Life. Any obligations under the contract that exceed the assets of the separate account are subject to our financial strength and claims-paying ability.
If you are a new investor in the [RiverSource PortfolioEdge Advisory Variable Annuity], you may cancel your Contract within 10 days of receiving it without paying fees or penalties. In some states, this cancellation period may be longer. Upon cancellation, you will receive your total Contract Value
and will not be assessed any fees or penalties on that amount. Alternatively, if state law requires, you will instead receive a refund of purchase payments and will not be
assessed any fees or penalties. You should review this prospectus, or consult with your investment professional, for additional information about the specific cancellation terms that apply.
Additional information about certain investment products, including variable
annuities, has been prepared by the Securities and Exchange Commission’s staff and is available at
Investor.gov.
The Securities and Exchange Commission has not approved or disapproved these securities or determined if this prospectus is accurate or complete. Any representation to the contrary is a criminal offense.
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 1
2 [RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus
These terms can help you understand details about your Contract.
Accumulation unit: A measure of the value of each
subaccount prior to the Annuitization Start Date.
Annuitant: The person or persons on whose life or life expectancy the annuity payouts are based.
Annuitization start date: The date when annuity payments
begin according to the applicable annuity payment plan.
Annuity
payouts: An amount paid at regular intervals under one of several plans.
Assumed investment return: The rate of return we assume
your investments will earn when we calculate your initial annuity payout amount using the annuity table in
your Contract. The standard assumed investment return we use is 5% but you may request we substitute an
assumed investment return of 3.5%.
Beneficiary: The person you designate to receive benefits in case of your death while the Contract is in force.
Close of
business: The time the New York Stock Exchange (NYSE) closes (4 p.m. Eastern time unless the NYSE closes earlier).
Code: The Internal Revenue Code of 1986, as amended.
Contingent annuitant: The person who becomes the
annuitant when the current annuitant dies prior to the annuitization start date. In the case of joint
ownership, one owner must also be the contingent annuitant.
Contract value: The total value of your Contract at any point in time. The Contract value is the sum of the contract value in the Special DCA Fixed Account and Contract value in the Variable Account.
Contract year: A period of 12 months, starting on the effective date of your Contract and on each anniversary of the effective date.
Due proof of death: Includes all documents needed to complete a beneficiary’s claim including, but not limited to, (1) information sufficient to determine Our
liability and the appropriate payee(s) legally entitled to the proceeds, and (2) if proceeds depend on the
action of parties other than Us, the date that legal impediments to payment are resolved and sufficient
evidence is provided to Us.
Funds: A portfolio of an open-end management investment company that is registered with the Securities and Exchange Commission (the "SEC") in which the Subaccounts invest. May also be referred to as an underlying Fund.
Good
order: We cannot process your transaction request relating to the Contract until we have received the request in good order at our Service Center. “Good order” means the actual receipt of the requested
transaction in writing, along with all information, forms and supporting legal documentation necessary to effect the transaction. To be in “good order”, your
instructions must be sufficiently clear so that we do not need to exercise any discretion to follow such
instructions. This information and documentation generally includes your completed request; the Contract
number; the transaction amount (in dollars); the names of and allocations to and/or from the subaccounts
and the fixed account affected by the requested transaction; Social Security Number or Taxpayer
Identification Number; and any other information, forms or supporting documentation that we may require.
For certain transactions, at our option, we may require the signature of all Contract owners for the
request to be in good order. With respect to purchase requests, “good order” also generally
includes receipt of sufficient payment by us to effect the purchase. We may, in our sole discretion,
determine whether any particular transaction request is in good order, and we reserve the right to change
or waive any good order requirements at any time.
Investment Options: The Fixed Account and the Subaccounts.
Owner (you,
your): The person or persons identified in the Contract as owner(s) of the Contract, who has or have the right to control the Contract (to decide on investment allocations, transfers, payout options, etc.). Usually, but not always, the owner is also the annuitant.
During the owner’s life, the owner is responsible for taxes, regardless of whether he or she receives
the Contract’s benefits. The owner or any joint owner may be a nonnatural person (e.g. irrevocable
trust or corporation) or a revocable trust. If any owner is a nonnatural person or a revocable trust, the
annuitant will be deemed to be the owner for Contract provisions that are based on the age or life of the
owner. When the Contract is owned by a revocable trust or irrevocable grantor trust, the annuitant(s)
selected must be the grantor(s) of the trust to assure compliance with Section 72(s) of the Code. Any
Contract provisions that are based on the age of the owner will be based on the age of the oldest owner.
Any ownership change, including continuation of the Contract by your spouse under the spousal continuation
provision of the Contract, redefines “owner”, “you” and “your”.
Partial Surrender: The withdrawal of part of your
Contract value. Throughout this prospectus, a Partial surrender includes the term
“withdrawal."
Qualified annuity:
A qualified annuity will not provide any necessary or additional tax deferral because it is used to fund a retirement plan that already receives preferential tax treatment.
All other contracts are considered nonqualified annuities.
Rider: You receive a rider to your contract when you purchase optional benefits. The rider adds the terms of the optional benefit to your Contract.
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 3
Rider effective date: The date a rider becomes effective as stated in the rider.
Separate
Account: An insulated segregated account, the assets of which are invested solely in the underlying Funds. We call this the Variable Account.
Service Center: Our department that processes all transaction and service requests for the Contracts. We consider all transaction and service requests received when they arrive in good order at the Service Center. Any transaction or service requests sent or directed to any
location other than our Service Center may end up delayed or not processed. Our Service Center address
and telephone number are listed on the first page of the prospectus.
Standard Death Benefit: The guaranteed minimum death
benefit payable before the Annuitization Start Date can be either: Maximum 3-Year Anniversary Value if you
are age 80 or younger on the application date or the date of the most recent covered life change, or Return
of
Purchase Payments if you are age 81 or older on the application date or the date of the most recent covered life change.
Subaccount: A division of the Variable Account, each of which invests in one Fund.
Surrender value: The amount you are entitled to receive if you make a full surrender from your Contract. It is the Contract value immediately prior to the surrender, minus
any applicable charges.
Valuation
date: Any normal business day, Monday through Friday, on which the NYSE is open, up to the time it closes. At the NYSE close, the next valuation date begins.
Variable Account: Refers to the RiverSource Variable Account
10, a Separate Account established to hold Contract owners’ assets allocated to the Subaccounts,
each of which invests in a particular Fund.
4 [RiverSource PortfolioEdge Advisory Variable
Annuity] — Prospectus
Overview of the Contract
Purpose: The purpose of the contract is to allow you to accumulate money for retirement or a similar
long-term goal. You do this by making one or more purchase payments.
The contract offers various optional features and benefits that may help you
achieve financial goals.
It may be appropriate for you if you
have a long-term investment horizon and your financial goals are consistent with the terms and conditions of the contract.
It is not intended for investors whose liquidity needs require
frequent withdrawals. If you plan to manage your investment in the
contract by frequent or short-term trading, the contract is not suitable for you.
The contract has two phases: the Accumulation Phase and the Income Phase.
Accumulation Phase. During the Accumulation Phase, you make purchase
payments and invest in: available subaccounts, each of which has a particular investment objective,
investment strategies, fees and expenses and the Special DCA Fixed Account that earns a declared rate of interest. These accounts, in turn, may earn returns that increase the value of the contract. If the contract value goes to zero due to underlying fund’s performance or deduction of fees, the contract (and any death benefit
riders) will no longer be in force and the contract will terminate.
A list of funds and additional information regarding each investment option available under the
contract is provided in Appendix A – Investment Options Available Under the Contract.
The amount of money you accumulate under your contract depends (in part) on the performance of the subaccounts you choose or the rates you earn on allocations to the Special DCA Fixed Account. You may transfer money between
subaccounts during the Accumulation Phase, subject to certain restrictions. Your contract value impacts the value of your contract’s benefits during the Accumulation Phase, including any optional benefits, as well as the amount
available for withdrawal, annuitization and death benefits.
Income Phase. The Income Phase begins when you (or your beneficiary) choose to annuitize the contract. You can apply your contract value (less any applicable premium tax and/or other charges) to an annuity payout plan that begins on the annuitization start date or any other date you elect. You may choose from a variety of plans that can help meet your
retirement or other income needs. We can make payouts on a fixed or variable basis, or both. You cannot take
withdrawals of contract value or
surrender the contract during the Income Phase.
All optional
death benefits terminate after the annuitization start date.
•
Death Benefits. If you die during the Accumulation Phase, we will pay a death benefit to your beneficiary or beneficiaries. All contracts include a Standard Death Benefit at no additional charge. Non-qualified contracts can elect to opt out of the Standard Death Benefit
and instead receive the Contract Value Death Benefit for a reduced mortality and expense risk charge. If you select the Contract Value Death Benefit, your beneficiary will only
receive the contract value as of the
day we receive due proof of death, which is impacted by investment performance and charges. If you elect the
Contract Value Death Benefit, you will not have a guaranteed return of purchase payments at death.
•
Optional Death Benefits. You may be able to purchase an optional death benefit available under the Contract, including the MAV Death Benefit, the
Benefit Protector Death Benefit, or the Enhanced Legacy Benefit, that provides additional death benefits for an additional fee. These optional death benefits may increase the amount of money payable
upon death. Optional death benefits must be elected at the time that the contract is purchased. After the death benefit is paid the contract will terminate.
•
Surrenders. You may surrender all or part of your contract
value at any time during the Accumulation Phase. If you request a full surrender, the contract will
terminate. You also may establish automated partial surrenders. Full and partial surrenders may be subject to charges and income taxes (including a 10% IRS penalty that may apply if you surrender prior to reaching age 59½) and may have other tax consequences.
•
Tax Treatment. You can transfer money between subaccounts
without tax implications, and earnings (if any) on your investments are generally tax-deferred. Generally, earnings are not taxed until they are distributed, which may occur
when making a withdrawal, upon receiving an annuity payment, or upon payment of the death benefit.
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Dollar Cost Averaging Programs. Automated Dollar Cost Averaging allows you, at no additional cost, to transfer a set amount monthly between subaccounts. Special Dollar Cost Averaging (SDCA), only available for new purchase payments and only for the first 180 days from the contract issue date, allows the systematic transfer from the Special DCA Fixed Account to one or more eligible
subaccounts over a 6 or 12 month period.
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 5
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Asset Rebalancing. Allows you, at no additional cost, to automatically rebalance the subaccount portion of your contract value on a periodic
basis.
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Automated Partial Surrenders. An optional service allowing you to set up automated partial surrenders from the Special DCA Fixed Account or the subaccounts.
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Electronic Delivery. You may register for the electronic delivery of your current prospectus and other documents related to your
contract.
6 [RiverSource
PortfolioEdge Advisory Variable Annuity] — Prospectus
Important Information You Should Consider
About the Contract
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FEES, EXPENSES AND
ADJUSTMENTS |
Location in
Statutory
Prospectus |
Are There Charges
or Adjustments for
Early
Withdrawals? |
No. The Contract does not have a surrender charge. |
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Are There
Transaction
Charges? |
No. We do not assess any transaction charges. |
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Are There Ongoing
Fees and
Expenses? |
Yes. The table below describes the current fees and expenses that you may pay each year, depending on the investment options and optional benefits you choose. Please refer to your Contract Data page for information about the specific fees you will pay each year based on the
options you have elected. |
Fee Table and
Examples
Appendix A:
Investment
Options Available
Under the
Contract |
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Base Contract(1) (varies by death benefit option, age band, and Contract value) |
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Fund options
(Funds fees and expenses)(2) |
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Optional benefits available for an
additional charge
(for a single optional benefit, if
elected)(3) |
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(1) As a percentage of average daily contract value in the variable account. Includes the mortality and expense fee and contract administrative charge. (2) As a percentage of Fund net assets.
(3) As a percentage of Contract Value or the greater of Contract Value or applicable guaranteed benefit amount (varies by optional benefit). The Minimum is percentage of average
daily Contract value in the Variable Account. Maximum is percentage of greater of Contract value or guaranteed death benefit amount.
Because your Contract is customizable, the choices you make affect how
much you will pay. To help you understand the cost of owning your
Contract, the following table shows the lowest and highest cost
you could pay each year, based on current charges. This estimate
assumes that you do not take withdrawals from the
Contract. |
Lowest Annual Cost:
$[___]
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Highest Annual Cost:
$[___]
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Assumes:
•Investment of $100,000 •5% annual appreciation
•Least expensive combination of Contract features and Fund fees and expenses •No optional benefits
•No sales charge •No additional purchase payments,
transfers or withdrawals |
Assumes:
•Investment of $100,000 •5% annual appreciation
•Most expensive combination of Contract features, optional benefits and Fund fees and expenses •No sales charge
•No additional purchase payments, transfers or withdrawals |
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 7
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Location in
Statutory
Prospectus |
Is There a Risk of
Loss from Poor
Performance? |
Yes. You can lose money by investing in this Contract including loss of principal. |
Principal Risks of
Investing in the
Contract |
Is This a
Short-Term
Investment? |
No. •The Contract is not a short-term investment and is not appropriate for an
investor who needs ready access to cash because the contract is
designed to provide for the accumulation of retirement savings
and income on a long-term basis.
•Surrenders may reduce contract guarantees. •Surrenders may also be subject to taxes and tax penalties.
•The benefits of tax deferral and long-term income mean the contract is generally more beneficial to investors with a long term investment horizon. |
Principal Risks of
Investing in the
Contract
Charges and
Adjustments –
Transaction
Expenses –
Surrender Charge
for Fixed Annuity
Payout Plans |
What Are the
Risks Associated
with the
Investment
Options? |
•An investment in the Contract is subject to the risk of poor investment
performance and can vary depending on the performance of the
investment options available under the Contract.
•Each investment option (including under any Fixed Account investment options) has its own unique risks. •You should review the investment options before making any investment
decisions. |
Principal Risks of
Investing in the
Contract
The Variable Account and the
Funds |
What Are the
Risks Related to
the Insurance
Company? |
Any obligations (including under the Fixed Account), guarantees or benefits
we may provide under the contract that exceed the value of
amounts held in the Variable Account are subject to our financial strength and
claims-paying ability. If we experience financial distress, we may not be
able to meet our obligations to you. More information about
RiverSource Life, including our financial strength ratings, is
available by contacting us at [__________]. |
Principal Risks of
Investing in the
Contract
The General
Account |
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Are There
Restrictions on
Investment
Options? |
Yes. •Subject to certain restrictions, you may transfer your Contract value
among the subaccounts without charge at any time before the
annuitization start date, and once per contract year after the annuitization start date.
•We reserve the right to modify, restrict or suspend your transfer privileges if we determine that your transfer activity constitutes market
timing.
•We reserve the right to limit the number of transfers allowed each contract year. The limit will not be less than 12 transfers per contract year.
•We reserve the right to add, remove or substitute Funds as investment options. We also reserve the right, upon notification to you, to close or
restrict any Funds.
•The Special DCA Fixed Account is only available during the first 180 days
from the contract issue date. |
Making the Most
of Your Contract –
Transferring
Among Accounts
Substitution of
Investments |
8 [RiverSource PortfolioEdge Advisory Variable
Annuity] — Prospectus
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Location in
Statutory
Prospectus |
Are There Any
Restrictions on
Contract
Benefits? |
Yes.
•Enhanced Legacy Benefit limits or restricts the investment options
you may select under the Contract. If you later decide you do not
want to invest in those approved investment options, you must
request a full surrender.
•Enhanced Legacy Benefit may limit subsequent purchase
payments. •Withdrawals may substantially reduce the benefit. •We may stop offering an optional benefit at any time for new
sales. |
Buying Your
Contract –
Purchase
Payments
Appendix A:
Investment
Options Available
Under the
Contract – Funds
Available Under
the Enhanced Legacy Benefit
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What Are the
Contract’s Tax
Implications? |
•Consult with a tax advisor to determine the tax implications of an investment in and payments and withdrawals received under this Contract. •If you purchase the Contract through a tax-qualified plan or individual
retirement account, you do not get any additional tax
benefit. •Earnings under your contract are taxed at ordinary income tax rates generally when withdrawn. You may have to pay a 10% tax penalty if you take a withdrawal before age 59½. |
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How Are
Investment
Professionals
Compensated? |
•RiverSource does not pay commissions to investment professionals for selling this Contract to you. Investment professionals receive compensation in connection with the Contract in the form of investment advisory fees paid by you. •Your investment professional may receive compensation for selling this
Contract to you, both in the form of advisory fees and because we
may share the revenue the Contract earns with the
professional’s firm. (Your investment professional may be
your broker-dealer, investment adviser, insurance agent, or
someone else.) This potential conflict of interest may influence
your investment professional to recommend this Contract over
another investment. |
About the Service
Providers |
Should I Exchange
My Contract? |
If you already own an annuity or insurance Contract, some investment
professionals may have a financial incentive to offer you a new
Contract in place of the one you own. You should only exchange a
Contract you already own if you determine, after comparing the
features, fees, and risks of both Contracts, that it is better
for you to purchase the new Contract rather than continue to own
your existing Contract. |
Buying Your
Contract –
Contract
Exchanges |
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 9
Fee Table and Examples
The following tables describe the fees, expenses and adjustments that you will pay when buying, owning, surrendering, or making withdrawals from an investment option or from the Contract. Please refer to your Contract Data page for information about the specific fees you will pay each year based on the
options you have elected.
State premium taxes
may be deducted at the time you buy the Contract, surrender or make withdrawals from the Contract, or apply contract value to an annuity payment
plan.
There are no sales charges, deferred sales charges, or surrender charges associated
with this Contract.
The next table describes the fees and expenses that you will pay each year during the
time that you own the contract (not including Funds fees and expenses). If you choose to
purchase an optional benefit, you will pay additional charges, as shown below.
Administrative Expenses
(assessed
annually and upon full surrender)
Annual contract administrative charge* |
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Annual contract administrative charge if your contract value equals or exceeds
$50,000 |
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* Upon full surrender of the contract, we will assess this charge even if
your contract value equals or exceeds $50,000.
Base Contract Expenses(1)
(as a percentage of average daily contract value in the variable account)
Age band is determined based on your age on the application date. For more
information on how we determine age band, please see section "Charges and Adjustments – Annual Contract Expenses – Mortality and Expense Risk Fee".
(1) Base Contract Expenses are called Mortality and Expense Risk Fee in the Contract and
elsewhere in this prospectus.
Contract Value Death Benefit
For non-qualified contracts only, you can opt out of the Standard Death Benefit and select the Contract Value Death Benefit. The base contract expense is 0.10% for all ages.
Optional Benefit Expenses
If your contract has the Standard Death Benefit, you may select one of the following optional death benefit riders for an
additional fee. The optional rider fee will be added to your mortality and expense risk
fee.
MAV Death Benefit*
(as a percentage of average daily contract value
in the variable account) |
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* If you choose the above optional death benefit, we will charge the
rider fee in addition to your mortality and expense risk fee.
Benefit Protector Death
Benefit (as a percentage of contract value charged annually on the contract anniversary) |
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Enhanced LegacySM
Benefit
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(Charged annually on the contract anniversary. Prior to age 86, the charge is calculated by multiplying the annual rider fee by the greater of the ROPP value, Accumulation Death Benefit (ADB) value (after any increase is added) or MAV or the contract value. On or following age 86, the charge is calculated by multiplying the annual rider fee by the greater of the ROPP value,
ADB value (after any increase is added) or MAV).
The next table shows the minimum and maximum total operating expenses charged by the Funds that you may pay periodically during the time that you own the contract. Expenses shown may change over time and may be higher or lower in the future. A complete list of investment options available under the contract, including their annual expenses, may be found in Appendix A.
10 [RiverSource
PortfolioEdge Advisory Variable Annuity] — Prospectus
Total Annual Fund Expenses |
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(expenses deducted from the Fund assets, including management fees, distribution and/or service
(12b-1) fees and other expenses) |
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(1)
Total annual Fund operating expenses are deducted from amounts that are allocated to the
Fund. They include management fees and other expenses and may include distribution (12b-1) fees. Other expenses may include service fees that may be used to compensate service
providers, including us and our affiliates, for administrative and contract owner services provided on
behalf of the Fund. The amount of these payments will vary by Fund and may be significant. See “The
Variable Account and the
Funds” for additional information, including potential conflicts of interest these payments may create. Distribution (12b-1) fees are used to finance any activity that is primarily intended to result in the sale of Fund shares. Because 12b-1 fees are paid out of Fund assets on an ongoing basis, you may pay more if you select Subaccounts investing in Funds that have adopted 12b-1 plans than if you select
Subaccounts investing in
Funds that have not adopted 12b-1 plans. For a more complete description of each Fund’s fees and expenses and important disclosure regarding payments the Fund and/or its affiliates make, please review the Fund’s prospectus and SAI.
These examples are intended to help you compare the cost of investing in the
contract. These costs include Transaction Expenses, Annual Contract Expenses, and Annual Fund Expenses.
These examples assume that you invest $100,000 in the contract for the time periods indicated. These examples also assume that your investment has a
5% return each year. The “Maximum”
example further assumes the most expensive combination of Annual
Contract Expenses reflecting the maximum charges, Annual Fund
Expenses and optional benefits available. The “Minimum”
example further assumes the least expensive combination of Annual
Contract Expenses reflecting the current charges, Annual Fund Expenses
and that no optional benefits are selected. Although your actual costs may be higher or lower, based on these assumptions your maximum and minimum costs would be:
Maximum Expenses. These examples assume that you have the Standard Death Benefit and optional Enhanced Legacy Benefit. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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If you surrender your contract at the end of the applicable time period: |
If you do not surrender your contract or if you select an annuity payout plan at the end of the applicable time period: |
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Minimum Expenses. These examples
assume that you have a non-qualified contract, have elected the Contract Value Death Benefit and do not select any optional benefits. Although your actual costs may be higher, based on these assumptions your costs would be:
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If you surrender your contract at the end of the applicable time period: |
If you do not surrender your contract or if you select an annuity payout plan at the end of the applicable time period: |
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THE EXAMPLES ARE ILLUSTRATIVE ONLY. YOU SHOULD NOT CONSIDER THESE EXAMPLES AS A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES WILL BE HIGHER OR LOWER THAN THOSE SHOWN DEPENDING UPON WHICH OPTIONAL BENEFIT YOU ELECT OTHER THAN INDICATED IN THE EXAMPLES OR IF YOU ALLOCATE CONTRACT VALUE TO ANY OTHER AVAILABLE SUBACCOUNTS.
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 11
Principal Risks of Investing in the Contract
Risk of Loss. Variable annuities involve risks, including possible loss of principal. Your losses could
be significant. This contract is not a deposit or obligation of, or guaranteed or endorsed by, any bank. This contract is not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency.
Short-Term Investment Risk. This contract is not designed for
short-term investing and may not be appropriate for an investor who needs ready access to cash. The benefits of tax deferral and long-term income means that this contract is
more beneficial to investors with a long-term investment horizon.
Withdrawal Risk. You should carefully consider the risks associated
with withdrawals under the contract. . If you make a withdrawal prior to age 59½, there may be adverse
tax consequences, including a 10% IRS penalty tax. A withdrawal may reduce the value of your standard and optional benefits. In addition, a withdrawal could reduce the value of
certain optional death benefits by an amount greater than the amount withdrawn. A total withdrawal (surrender) will result in the termination of your contract.
Subaccount Risk. Amounts that you invest in the subaccounts are subject to the risk of poor investment performance. You assume the
investment risk. Generally, if the subaccounts that you select make money, your contract value goes up, and if they lose money, your contract value goes down. Each
subaccount’s performance depends on the performance of its underlying Fund. Each underlying Fund has its own investment risks, and you are exposed to the Fund’s
investment risks when you invest in a subaccount. You are responsible for selecting subaccounts that are appropriate for you based on your own individual circumstances,
investment goals, financial situation, and risk tolerance. For risks associated with the Special DCA Fixed Account, see Financial Strength and Claims-Paying Ability Risk
below.
Selection Risk. The optional benefits under the contract were designed for different financial goals and to protect against different
financial risks. There is a risk that you may not choose, or may not have chosen, the benefit or benefits (if any) that are best suited for you based on your present or future
needs and circumstances, and the benefits that are more suited for you (if any) may not be elected after your contract is issued. In addition, if you elected an optional benefit and if the contingencies upon which the benefit depend never occur, you will have paid for an optional
benefit that did not provide a financial benefit. There is also a risk that any financial return of an optional benefit, if any, will ultimately be less than the amount you paid for the benefit.
Investment Restrictions Risk. The optional Enhanced Legacy Benefit limits the investment options that are available to you and limits your ability to take certain actions under the contract. These investment requirements are designed to
reduce our risk that we will have to make payments to you from our own assets. In turn, they may also limit the potential growth of your contract value and the potential growth of your guaranteed benefits. This may conflict with your
personal investment objectives.
Managed Volatility Fund Risk. The Portfolio Stabilizer funds are managed volatility funds that employ a
strategy designed to reduce overall volatility and downside risk. These risk management techniques help us manage our financial risks associated with the contract’s guarantees, like death benefits, because they reduce the incidence of extreme outcomes including the probability of large gains or losses.
However, these strategies can also limit your participation in rising equity markets, which may limit the potential growth of your contract value and the potential growth of your
guaranteed benefits and may therefore conflict with your personal investment objectives. Certain Funds advised by our affiliate, Columbia Management, employ such risk management strategies. If you elect the Enhanced
Legacy Benefit, we require you to invest in these funds, which may limit your ability to increase your
benefit. Costs associated with running a managed volatility strategy may also adversely impact the performance of managed volatility funds.
Purchase Payment Risk. Your ability to make subsequent purchase payments is subject to restrictions. We reserve the right to limit, restrict,
suspend, or reject purchase payments, including in certain contract years or based on age, and in conjunction with the optional Enhanced Legacy Benefit, with written notice. Also, our prior approval may be required before accepting certain purchase payments. We reserve the right to limit certain annuity features (for example,
investment options) if prior approval is required. There is no guarantee that you will always be permitted to make purchase payments.
Contract Changes Risk. We reserve the right to make certain changes in the future, subject to
applicable law. During the annuity payout period, we reserve the right to limit the number of subaccounts in which you may invest. We reserve the right to add, remove or substitute approved investment options at any time and in our sole discretion. We reserve
the right to close or restrict approved investment options in our sole discretion.
Financial Strength and Claims-Paying Ability Risk. All guarantees
under the contract that are paid from our general account are subject to our financial strength and claims-paying ability. If we experience financial distress, we may not be
able to meet our obligations to you.
Cybersecurity Risk. Increasingly, businesses are dependent on the continuity, security, and effective
operation of various technology systems. The nature of our business depends on the continued effective operation of our systems and those of our business partners.
12 [RiverSource
PortfolioEdge Advisory Variable Annuity] — Prospectus
This dependence makes us
susceptible to operational and information security risks from cyber-attacks. These risks may include the following:
•
the corruption or destruction of data;
•
theft, misuse
or dissemination of data to the public, including your information we hold; and
•
denial of service attacks on our website or other forms of attacks on our systems and the software and hardware we use
to run them.
These attacks and their consequences can negatively impact your contract, your privacy, your ability to conduct
transactions on your contract, or your ability to receive timely service from us. The risk of cyberattacks may be higher during periods of geopolitical turmoil. There can be no assurance that we, the underlying funds in your contract, or our other business partners will avoid losses affecting your contract due to any successful cyber-attacks or information
security breaches.
Potential Adverse Tax Consequences. Tax considerations vary by individual facts and circumstances. Tax
rules may change without notice. Generally, earnings under your contract are taxed at ordinary income tax rates when withdrawn. You may have to pay a tax penalty if you take a withdrawal before age 59 ½. If you purchase a qualified annuity to fund a retirement plan that is tax-deferred, your contract will not provide any necessary or additional tax deferral beyond what is provided in that retirement plan. Consult a tax professional.
The Variable Account and the Funds
The Variable Account: The Variable Account was established under Minnesota law on Aug. 23, 1995. The Variable Account, consisting of subaccounts, is registered together as a single unit investment trust under the
Investment Company Act of 1940 (the 1940 Act). This registration does not involve any supervision of our management or investment practices and policies by the SEC. All obligations arising under the contracts are general obligations of
RiverSource Life.
The Variable Account meets the definition of a separate account under federal
securities laws. Income, gains, and losses credited to or charged against the Variable Account reflect the Variable Account’s own investment experience and not the investment experience of RiverSource
Life’s other assets. The Variable Account’s assets are held separately from RiverSource Life’s assets and are not chargeable with liabilities incurred in any other business of RiverSource Life. RiverSource Life is obligated to pay all amounts promised to contract owners under the contracts. The Variable Account includes other
subaccounts that are available under contracts that are not described in this prospectus.
The IRS has issued guidance on investor control but may issue additional guidance in the future. We reserve the right to
modify the contract or any investments made under the terms of the contract so that the investor control rules do not apply to treat the contract owner as the owner of the subaccount assets rather than the owner of an annuity contract. If
the contract is not treated as an annuity contract for tax purposes, the owner may be subject to current taxation on any current or accumulated income credited to the contract.
We intend to comply with all federal tax laws so that the contract qualifies as an annuity for federal tax purposes. We
reserve the right to modify the contract as necessary in order to qualify the contract as an annuity for federal tax purposes.
The Funds: The contract currently offers Subaccounts investing in shares of the Funds. Contract value allocated to a Subaccount will
vary based on the investment experience of the corresponding Fund in which the Subaccount invests. There is a risk of loss of the entire amount invested. Information regarding
each Fund, including (i) its name, (ii) its investment objective, (iii) its investment adviser and any sub-investment adviser, (iv) current expenses, and (v) performance may be found in Appendix A to this prospectus.
Please read the Funds’ prospectuses carefully for facts you should know before investing. These prospectuses containing more detailed information about the Funds are available by contacting us at 70100 Ameriprise Financial
Center, Minneapolis, MN 55474, telephone: 1-800-862-7919, website: Ameriprise.com/variableannuities.
•
Investment objectives: The investment managers and advisers cannot guarantee that the Funds will meet their investment
objectives.
•
Fund name and management: An underlying Fund in which a Subaccount invests may have a name, portfolio manager, objectives, strategies and
characteristics that are the same or substantially similar to those of a publicly-traded retail mutual fund. Despite these similarities, an underlying fund is not the same as any
publicly-traded retail mutual fund. Each underlying fund will have its own unique portfolio holdings, fees, operating expenses and operating results. The results of each underlying fund may differ significantly from any publicly-traded retail mutual
fund.
•
Eligible purchasers: All Funds are available to serve as underlying funds for variable annuities and
variable life insurance policies. The Funds are not available to the public (see “Fund name and management” above). Some Funds also are available to serve as investment options for tax-deferred retirement plans. It is possible that in the
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 13
future for
tax, regulatory or other reasons, it may be disadvantageous for variable annuity accounts and variable life insurance accounts and/or tax-deferred retirement plans to invest in
the available funds simultaneously. Although we and the Funds’ providers do not currently foresee any such disadvantages, the boards of directors or trustees of each Fund will monitor events in order to identify any material conflicts between annuity owners, policy owners and
tax-deferred retirement plans and to determine what action, if any, should be taken in response to a conflict. If a board were to conclude that it should establish separate Fund providers for the variable annuity, variable life
insurance and tax-deferred retirement plan accounts, you would not bear any expenses associated with establishing separate Funds. Please refer to the Funds’ prospectuses for risk disclosure regarding simultaneous investments by
variable annuity, variable life insurance and tax-deferred retirement plan accounts. Each Fund intends to comply with the diversification requirements under Section 817(h) of the Code.
•
Asset allocation programs may impact Fund performance: Asset allocation programs in general may
negatively impact the performance of an underlying fund. Even if you do not participate in an asset allocation program, a Fund in which your Subaccount invests may be impacted if it is included in an asset allocation program. Rebalancing or
reallocation under the terms of the asset allocation program may cause a Fund to lose money if it must sell large amounts of securities to meet a redemption request. These losses can be greater if the Fund holds securities that are
not as liquid as others; for example, various types of bonds, shares of smaller companies and securities of foreign issuers. A Fund may also experience higher expenses because it
must sell or buy securities more frequently than it otherwise might in the absence of asset allocation program rebalancing or reallocations. Because asset allocation programs include periodic rebalancing and may also include reallocation, these effects may occur under the
asset allocation program we offer or under asset allocation programs used in conjunction with the contracts and plans of other eligible purchasers of the Funds.
•
Funds available under the contract: We seek to provide a broad array of underlying funds taking into account the fees and charges imposed by each Fund and
the contract charges we impose. We select the underlying funds in which the Subaccounts initially invest and when there is substitution (see “Substitution of Investments”). We also make all decisions regarding which Funds to retain in a contract, which Funds to add to a contract and which Funds will
no longer be offered in a contract. In making these decisions, we may consider various objective and subjective factors. Objective factors include, but are not limited to Fund
performance, Fund expenses, classes of Fund shares available, size of the Fund and investment objectives and investing style of the Fund. Subjective factors include, but are not limited to, investment sub-styles and process, management skill and history at other Funds and portfolio
concentration and sector weightings. We also consider the levels and types of revenue, including but not limited to expense payments and non-cash compensation of a Fund, its distributor, investment adviser, subadviser, transfer agent or
their affiliates pay us and our affiliates. This revenue includes, but is not limited to compensation for administrative services provided with respect to the Fund and support of
marketing and distribution expenses incurred with respect to the Fund.
•
Model portfolios: Your financial advisor may develop subaccount allocation recommendations based on model portfolios created by
affiliated and non-affiliated model providers. Model portfolio providers have a financial interest in providing the model portfolios, although they do not receive a fee. To the
extent the model portfolios favor Funds advised or sub-advised by Columbia Management, it is more profitable for Ameriprise Financial, Inc. and its affiliates. Model portfolios do not take into account the investment objectives, financial situation, risk profile or particular
needs of an individual investor. A model portfolio does not protect against the risk of loss or guarantee performance.
•
Money Market fund yield: In low interest rate environments, money market fund yields may decrease to a level where the deduction of fees and
charges associated with your contract could result in negative net performance, resulting in a corresponding decrease in your contract value.
•
Conflicts of Interest with Certain Funds Advised by Columbia
Management. We are an affiliate of Ameriprise Financial, Inc., which is the parent company of Columbia
Management Investment Advisers, LLC (Columbia Management). Columbia Management acts as investment adviser to several funds of funds, including Portfolio Navigator and Portfolio Stabilizer funds. As such, it retains full discretion over the investment activities and
investment decisions of the Funds. These funds invest in other registered mutual funds. In providing investment advisory services for the funds and the underlying funds in which those funds respectively invest, Columbia Management
is, together with its affiliates, including us, subject to competing interests that may influence its decisions. These competing interests typically arise because Columbia
Management Investment Advisers or one of its affiliates serves as the investment adviser to the underlying funds and may provide other services in connection with such underlying funds, and because the compensation we and our affiliates receive for providing these investment
advisory and other services varies depending on the underlying fund.
14 [RiverSource PortfolioEdge Advisory Variable
Annuity] — Prospectus
•
Revenue we receive from the Funds and potential conflicts of
interest:
Expenses We May Incur on Behalf of the Funds
When a Subaccount invests in a Fund, the Fund holds a single account in the name of the Variable Account. As such, the Variable Account is actually the shareholder of the fund. We, through our Variable Account, aggregate the
transactions of numerous contract owners and submit net purchase and redemption requests to the Funds on a daily basis. In addition, we track individual contract owner transactions and provide confirmations, periodic statements, and
other required mailings. These costs would normally be borne by the fund, but we incur them instead.
Besides incurring these administrative expenses on behalf of the funds, we also incur distributions expenses in selling
our contracts. By extension, the distribution expenses we incur benefit the funds we make available due to contract owner elections to allocate purchase payments to the funds
through the Subaccounts. In addition, the funds generally incur lower distribution expenses when offered through our Variable Account in contrast to being sold on a retail basis.
A complete list of why we may receive this revenue, as well as sources of revenue, is described in detail below.
Payments the Funds May Make to
Us
We or our affiliates may receive from each of
the Funds, or their affiliates, compensation including but not limited to expense payments. These payments are designed in part to compensate us for the expenses we may incur on
behalf of the Funds. In addition to these payments, the Funds may compensate us for wholesaling activities or to participate in educational or marketing seminars sponsored by the Funds.
We or our affiliates may receive revenue derived from the 12b-1 fees charged by the Funds. These fees are deducted from the assets of the Funds. This revenue and the amount by which it can vary may create conflicts of interest. The
amount, type, and manner in which the revenue from these sources is computed vary by Fund.
Conflicts of Interest These
Payments May Create
When we determined the
charges to impose under the contracts, we took into account anticipated payments from the Funds. If we had not taken into account these anticipated payments, the charges under
the contract would have been higher. Additionally, the amount of payment we receive from a Fund or its affiliate may create an incentive for us to include that Fund as an investment option and may influence our decision regarding which Funds to include in the
Variable Account as subaccount options for contract owners. Funds that offer lower payments or no payments may also have corresponding expense structures that are lower, resulting in decreased overall fees and expenses to
shareholders.
We offer Funds managed by our affiliate Columbia Management. We have additional financial incentive to offer our
affiliated funds because additional assets held by them generally results in added revenue to us and our parent company, Ameriprise Financial, Inc. Additionally, employees of Ameriprise Financial, Inc. and its affiliates, including
our employees, may be separately incented to include the affiliated funds in the products, as employee
compensation and business unit operating goals at all levels are tied to the success of the company. Currently, revenue received from our affiliated funds comprises the greatest amount and percentage of revenue we derive from
payments made by the Funds.
The Amount of Payments We Receive from the Funds
We or our affiliates receive revenue which ranges up to [___]% of the average daily net assets invested in the Funds through this and other contracts we and our affiliates
issue.
Why revenues are paid to
us: In accordance with applicable laws, regulations and the terms of the agreements under which such
revenue is paid, we or our affiliates may receive revenue, including but not limited to expense payments and non-cash compensation, for various purposes:
•
Compensating, training and educating financial advisors who sell the contracts.
•
Granting access to our employees whose job it is to promote sales of the contracts by authorized selling firms and their
financial advisors, and granting access to financial advisors of our affiliated selling firms.
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Activities or services we or our affiliates provide that assist in the promotion and
distribution of the contracts including promoting the funds available under the contracts to contract owners, authorized selling firms and
financial advisors.
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Providing sub-transfer agency and shareholder servicing to contract owners.
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Promoting, including and/or retaining the Fund’s investment portfolios as underlying
Funds in the contracts.
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Advertising, printing and mailing sales literature, and printing and distributing
prospectuses and reports.
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Furnishing personal services to contract owners, including education of contract
owners regarding the Funds, answering routine inquiries regarding a Fund, maintaining accounts or providing
such other services eligible for service fees as defined under the rules of the Financial Industry Regulatory Authority (FINRA).
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Subaccounting
services, transaction processing, recordkeeping and administration.
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 15
•
Sources of revenue received from affiliated funds: The affiliated funds are managed by Columbia Management. The sources of revenue we receive from these affiliated funds,
or from the funds’ affiliates, may include, but are not necessarily limited to, the following:
•
Assets of the Fund’s adviser, sub-adviser, transfer agent, distributor or an affiliate
of these. The revenue resulting from these sources may be based either on a percentage of average daily net assets of the Fund or on the actual cost of certain services we provide with respect to the Fund. We may receive this revenue either in the form of a cash
payment or it may be allocated to us.
•
Compensation paid out of 12b-1 fees that are deducted from Fund assets.
•
Sources of revenue received from unaffiliated funds: The unaffiliated funds are not managed by an affiliate of ours. The sources of revenue we receive from these
unaffiliated funds, or the funds’ affiliates, may include, but are not necessarily limited to, the following:
•
Assets of the
Fund’s adviser, sub-adviser, transfer agent, distributor or an affiliate of these. The revenue resulting from these sources may be based either on a percentage of average
daily net assets of the Fund or on the actual cost of certain services we provide with respect to the Fund. We receive this revenue in the form of a cash payment.
•
Compensation paid out of 12b-1 fees that are deducted from Fund assets.
The general account includes all assets owned by RiverSource Life, other than those in the Variable Account and our other separate accounts. Subject to applicable state law, we have sole discretion to decide how assets of the general
account will be invested. The assets held in our general account support the guarantees under your contract
including any optional benefits offered under the contract. These guarantees are subject to the claims-paying ability and financial strength of RiverSource Life. You should be aware that our general account is exposed to many of the same risks normally associated with a portfolio of fixed-income securities including interest rate, option, liquidity and credit risk. You should also be aware that we issue other types of annuities and financial instruments and products as well, and
these obligations are satisfied from the assets in our general account. Our general account is not segregated or insulated from the claims of our creditors. The financial statements contained in the SAI include a further discussion of
the risks inherent within the investments of the general account. The fixed account is supported by our general account that we make available under the contract.
Amounts allocated to the fixed account are part of our general account. The fixed account includes the Special DCA
fixed account. We credit interest daily on amounts you allocate to the fixed account at rates we determine
from time to time at our discretion. Interest rates credited in excess of the guaranteed rate generally will be based on various factors related to future investment earnings. The fixed account guaranteed minimum interest rate on amounts invested in the
fixed account may vary by state and contract issue year, but it will be shown on your Contract Data page
and will never be less than state law allows. We back the principal and interest guarantees relating
to the fixed account. These guarantees are subject to the creditworthiness and continued claims-paying ability of RiverSource Life. Information regarding the fixed account option, including (i) its name, (ii) its terms, and (iii) its historical guaranteed minimum interest rates may be found in Appendix A to this prospectus.
Because of exemptive and exclusionary provisions, we have not registered interests in the fixed account as securities under the Securities Act of 1933 nor have any of these accounts been registered as investment companies under the
Investment Company Act of 1940. Accordingly, neither the fixed account nor any interests in the fixed account are subject to the provisions of these Acts.
The fixed account has not been registered with the SEC. Disclosures regarding the fixed account, however, are subject to
certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in a prospectus.
The Special DCA Fixed Account
Only available during the first 180 days from the contract issue
date
You may allocate purchase payments to the Special DCA fixed
account within 180 days of contract issue. You may not transfer contract value to the Special DCA fixed account.
You may allocate your entire purchase payment to the Special DCA fixed account for a term of six or twelve months. We
reserve the right to offer shorter or longer terms for the Special DCA fixed account.
16 [RiverSource PortfolioEdge Advisory Variable
Annuity] — Prospectus
In accordance with your
investment instructions, we transfer amounts from the Special DCA fixed account to the subaccounts so that, at the end of the Special DCA fixed account term, the balance of the
Special DCA fixed account is zero. The amount of each transfer equals the remaining Special DCA fixed account value on the date of the transfer divided by the number of remaining transfers in the program. You may not change the amount of transfers. The first
Special DCA monthly transfer occurs one day after we receive your payment.
The value of the Special DCA fixed account increases when we credit
interest to the Special DCA fixed account, and decreases when we make monthly transfers from the Special DCA fixed account. When you allocate a purchase payment to the Special DCA fixed account, the interest rate applicable to that purchase payment will be the rate in effect for the
Special DCA fixed account term you choose on the date we receive your purchase payment. The applicable interest rate is guaranteed for the length of the term for the Special DCA fixed account term you choose. We credit and compound
interest daily based on a 365-day year (366 in a leap year) so as to produce the annual effective rate which we declare. We credit interest only on the declining balance of the Special DCA fixed account; we do not credit interest on amounts
that have been transferred from the Special DCA fixed account. As a result, the net effective interest rates we credit will be less than the declared annual effective rates. We credit and compound interest daily based on a full year so as to
produce the annual effective rate which we declare. The interest rate we apply to each purchase payment to the Special DCA fixed account is guaranteed for the term. Thereafter, we will change the rates from time to time at our discretion,
but we will never credit a rate that is less than the fixed account guaranteed minimum interest rate. We also reserve the right to declare a Special DCA fixed account with a different duration.
Alternatively, you may allocate your purchase payment to any combination of the
following which equals one hundred percent of the amount you invest:
•
the Special DCA fixed account for a six month term;
•
the Special DCA fixed account for a twelve month term:
•
the approved
investment options for the Enhanced Legacy Benefit;
•
unless you have elected the Enhanced Legacy Benefit, to the subaccounts, subject to investment minimums.
Once you establish a
Special DCA fixed account, you cannot allocate additional purchase payments to it. However, you may establish another Special DCA fixed account and allocate new purchase payments
to it.
You may discontinue any Special DCA fixed account before
the end of its term by giving us notice. If you do so, we will transfer the remaining balance of the Special DCA fixed account: 1) to the approved investment options, if the
Enhanced Legacy Benefit is elected, or 2) in accordance with your investment instructions to us if the Enhanced Legacy
Benefit is not elected. Transfers are subject to investment minimums and other restrictions we may impose,
including but not limited to, any limitations described in this prospectus on transfers (see “Transfer policies”).
Dollar-cost averaging from the Special DCA fixed account does not guarantee that any
subaccount will gain in value nor will it protect against a decline in value if market prices fall. For an example of how Special DCA dollar-cost averaging works, see table below showing the Special DCA fixed account for a six-month term.
How Special dollar-cost averaging works
By spreading the investment over the term of the Special DCA |
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Number of units purchased |
you automatically buy
more units when the
per unit market price is low |
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and fewer units when the per unit market price is high. |
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You paid an average price of $18.11 per unit over the 6 months, while the average
market price actually was $18.33.
With the assistance of your financial advisor, you can
complete an application and your financial advisor will send it along with your initial purchase payment to our Service Center.
We are required by law to obtain personal information from you which we will use to
verify your identity. If you do not provide this information we reserve the right to refuse to issue your contract or take other steps we deem reasonable. As the owner, you have all rights and may receive all benefits under the contract. You may buy a qualified or nonqualified
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 17
annuity. Generally, you can
own a nonqualified annuity in joint tenancy with rights of survivorship only in spousal situations. You cannot own a qualified annuity in joint tenancy. You can buy a contract if
you are 90 or younger on the date the contract is issued.
When you apply, you may select (if available in your state):
•
subaccounts and/or the Special DCA fixed account in which you want to invest;
•
how you want to make purchase payments;
•
for
non-qualified contracts only, the Standard Death Benefit or the Contract Value Death Benefit. (Note that
qualified contracts cannot select the Contract Value Death Benefit.)
•
one of the following optional death benefit riders:
– Benefit Protector
Death Benefit; or
– Enhanced Legacy Benefit.
We restrict investment options if you select the Enhanced Legacy Benefit and you are required to allocate your purchase payments and contract value to the approved investment options, as described in the “Appendix A: Funds Available
Under the Enhanced Legacy Benefit” section in this prospectus.
The contract provides for allocation of purchase payments to the subaccounts of the variable account and/or to the
Special DCA fixed account.
If your application is complete, we will process it and apply your purchase payment
to your investment selections within two business days after we receive it at our Service Center. If we accept your application, we will send you a contract. If your application is not complete, you must give us the information to complete it within five business days. If we cannot
accept your application within five business days, we will decline it and return your purchase payment unless you specifically ask us to keep the purchase payment and apply it once your application is complete.
We will credit additional eligible purchase payments you make to your accounts on the valuation date we receive them. If we receive an additional purchase payment at our Service Center before the close of business, we will credit any
portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the valuation date we received the payment. If we receive an additional purchase payment at our Service Center at or after the close
of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the next valuation date after we received the payment.
You may make regular payments to your contract under a scheduled payment plan. You must make an initial purchase payment
of $5,000 or $10,000 depending on the tax qualification (see “Buying Your Contract —
Purchase Payments”). Once the required initial purchase payment amount has been met, you can begin the scheduled payment plan by sending a completed form to the Service Center. Certain qualified plan applications allow the establishment of a
scheduled payment plan without meeting the required initial purchase payment amount. Contact your financial advisor for details. There is no charge for the scheduled payment plan. You can stop your scheduled payment plan at any time.
You may return your Contract to your financial advisor or to our Service Center within the time stated on the first page of your Contract and receive a full refund of the Contract value. The valuation date will be the date your request is received by your financial advisor or at our Service Center. We will not deduct any Contract charges or fees from your Contract
value (except for fees assessed daily on assets in the Variable Account). You bear the investment risk from the time of purchase until you return the Contract; the refund amount may be more or less than the payment you made. (Exception: If
state law requires, we will refund your purchase payments instead of the Contract value and we will not deduct any fees or penalties.) See Appendix C for a state-by-state description of material variations of this Contract, including the right to examine and cancel period.
Householding and delivery of certain documents
With your prior consent, RiverSource Life and its affiliates may use and combine information concerning accounts owned
by members of the same household and provide a single paper or electronic copy of certain documents to that household. This householding of documents may include prospectuses,
supplements, annual reports, semiannual reports and proxies. Your authorization remains in effect unless we are notified otherwise. If you wish to continue receiving multiple copies of these documents, you can opt out of householding by calling us at 1.866.273.7429. Multiple
mailings will resume within 30 days after we receive your opt out request.
18 [RiverSource
PortfolioEdge Advisory Variable Annuity] — Prospectus
Contract
Exchanges
You should only exchange a contract you already own if you
determine, after comparing the features, fees, and risks of both contracts, that it is better for you to purchase the new contract rather than continue to own your existing
contract.
Generally, you can exchange one nonqualified annuity for another or for a qualified long-term care insurance policy in a “tax-free” exchange under Section 1035 of the Code. You can also do a partial exchange from one nonqualified
annuity contract to another annuity contract, subject to Internal Revenue Service (IRS) rules. You also generally can exchange a life insurance policy for a nonqualified annuity. However, before making an exchange, you should compare both
contracts carefully because the features and benefits may be different. Fees and charges may be higher or lower on your old contract than on the new contract. You may have to pay
a surrender charge when you exchange out of your old contract. If the exchange does not qualify for Section
1035 treatment, you also may have to pay federal income tax on the distribution. State income taxes may also apply. You should not exchange your old contract for the new contract
or buy the new contract in addition to your old contract, unless you determine it is in your best interest. (See “Taxes – 1035 Exchanges.”)
Purchase payment amounts and purchase payment timing may vary by state and be limited under the terms of the contract. If we do not receive your initial purchase payment within 180 days from the
application date, we will consider your contract void from the start.
Minimum Initial Purchase Payments*
Minimum Additional Purchase Payments
Maximum Purchase Payments** (without our prior approval): based on the contract year and your
age on the effective date of the payment:
Maximum Purchase Payments Per Contract Year |
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For the first contract year |
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Second contract year and thereafter |
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Maximum Total Purchase Payments Per Owner (see the Purchase Payment
provision in the Contract) |
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According to Our current administrative practice, the Maximum Purchase Payments
may be higher than shown above and may vary by age and contract year. Contact Your advisor or Our Service Center for the current Maximums.
*
If a payroll remittance is set up through your employer, the minimum initial purchase
payment is $50.
**
These limits apply in total to all RiverSource Life annuities you own unless a higher amount applies to your contract. We reserve the right to waive or increase the maximum limit. For qualified annuities, the Code’s limits on annual contributions also apply. Additional purchase payments for
inherited IRA contracts cannot be made unless the payment is IRA money inherited from the same decedent.
See Appendix C: State Variations for information on maximum purchase payment requirements in a particular
state.
How to Make Purchase Payments
•
Our Service Center or your financial advisor can help you to move money
electronically.
•
You can use the
secure site at ameriprise.com or the Ameriprise Financial app if you are an Ameriprise client.
2 By letter
Send your check along with your name and contract number to:
RiverSource Life Insurance Company
70200 Ameriprise Financial Center
Minneapolis, MN 55474
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 19
Limitations on Use of
Contract
If mandated by applicable law, including but not limited to, federal anti-money
laundering laws, we may be required to reject a purchase payment. We may also be required to block an owner’s access to contract values and satisfy other statutory obligations. Under these circumstances, we may refuse to implement requests for transfers, surrenders or death
benefits until instructions are received from the appropriate governmental authority or court of competent jurisdiction.
The Annuitization Start Date
Annuity payouts begin on the annuitization start date. This means that the contract
will be annuitized (converted to a stream of monthly payments). If your contract is annuitized, the contract goes into income phase and only the annuity payout provisions continue. You will no longer have access to your contract value. This means that the death benefit and
any optional benefits you have elected will end. When we process your application, we will establish the annuitization start date to be the maximum age (or contract anniversary if applicable). You also can change the annuitization start
date, provided you send us written instructions at least 30 days before annuity payouts begin.
The annuitization start date must be:
•
no earlier than the 30th day after the contract’s effective date; and no later
than
•
the
owner’s 95th birthday or the tenth contract anniversary, if later,
•
or such other date as agreed to by us but not later than the owner’s 105th birthday.
Six months prior to your annuitization start date, we will contact you with your
options including the option to postpone your annuitization start date to a future date. You can also choose to delay the annuitization of your contract to a date beyond age 95, to the extent allowed by applicable state law and tax laws.
If you do not make an election, annuity payouts using the contract’s default option of annuity payout Plan B — Life Income with 10 years certain will begin on the annuitization start date, subject to Internal Revenue Code limitations,
and your monthly annuity payments will continue for as long as the annuitant lives. If the annuitant does not survive 10 years, we will continue to make payments until 10 years of payments have been made (see “The Annuity Payout
Period – Annuity Payout Plans”).
Generally, if you own a qualified annuity (for example, an IRA) and tax laws require that you take distributions from your
annuity prior to your annuitization start date, your contract will not be automatically annuitized (subject
to state requirements). However, if you choose, you can elect to request annuitization or take partial
surrenders to meet your required minimum distributions.
We will pay to your named beneficiary the death benefit if it becomes payable while the contract is in force and before
the annuitization start date. If there is more than one beneficiary we will pay each beneficiary’s designated share when we receive their completed claim. A beneficiary will bear the investment risk of the variable account until we receive the
beneficiary’s completed claim. If there is no named beneficiary, then the default provisions of your contract will apply. (See “Benefits in Case of Death” for more about beneficiaries.)
Surrender Charge for Fixed Annuity Payout Plans
Fixed payouts: Surrender charge under annuity payout plans allowing surrenders of the present value of remaining guaranteed payouts:
If you elect an annuity payout plan on a fixed basis and the plan we make available provides a liquidity feature
permitting you to surrender any portion of the underlying value of remaining guaranteed payouts, a surrender charge may apply.
A surrender charge will be assessed against the present value of any remaining guaranteed payouts surrendered. The
discount rate we use in determining present values varies based on: (1) the contract value originally applied to the fixed annuitization; (2) the remaining years of guaranteed payouts; (3) the annual effective interest rate and the periodic
payment amount for new immediate annuities of the same duration as the remaining years of guaranteed payouts; and (4) the interest spread (currently 1.50%). If we do not currently offer immediate annuities, we will use rates and values
applicable to new annuitizations to determine the discount rate.
20 [RiverSource PortfolioEdge Advisory Variable
Annuity] — Prospectus
Once the discount rate is
applied and we have determined the present value of the remaining guaranteed payouts you are surrendering, the present value determined will be multiplied by the surrender charge
percentage in the table below and deducted from the present value to determine the net present value you will receive.
Number of Completed Years Since Annuitization
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Surrender charge percentage |
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*
We do not permit surrenders in the first year after annuitization.
We will provide a quoted
present value (which includes the deduction of any surrender charge). You must then formally elect, in a form acceptable to us, to receive this value. The remaining guaranteed
payouts following surrender will be reduced, possibly to zero.
Other information on charges: Ameriprise Financial, Inc. makes
certain custodial services available to some profit sharing, money purchase and target benefit plans funded by our annuities. Fees for these services start at $30 per calendar year per participant. Ameriprise Financial, Inc. will charge a termination fee for owners under age 59 ½ (fee waived in case of death or disability).
Possible group reductions: In some cases we may incur lower sales and administrative expenses due to
the size of the group, the average contribution and the use of group enrollment procedures. In such cases, we may be able to reduce or eliminate certain charges such as the contract administrative charges. However, we expect this to occur
infrequently.
Base Contract Expenses consist of the contract administrative charge and mortality
and expense risk fee.
Contract Administrative
Charge
We charge this fee for establishing and maintaining your
records. For contracts with contract value less than $50,000, we currently deduct $50 from your contract value on your contract anniversary. We reserve the right to adjust this
charge after the first contract anniversary, but it will never exceed $80. If your contract value is $50,000 or more on the contract anniversary, we currently do not deduct this charge from your contract value; however, we reserve the right to
charge up to $30 after the first contract anniversary.
We prorate this charge between the Special DCA fixed account and the subaccounts in the same proportion your interest in
each account bears to your total contract value.
If you take a full surrender of your contract, we will deduct the charge at the time of surrender regardless of the contract value. This charge does not apply to amounts applied to an annuity payment plan or to the death benefit.
Mortality and Expense Risk Fee
In calculating unit values, we will deduct a mortality and expense risk charge daily
from each subaccount which is equal, on an annual basis, to a percentage of the daily net asset value. This percentage is the annual mortality and expense risk fee. The deduction is made to compensate Us for assuming the mortality and expense risks under contracts of this
type. This fee does not apply to the Special DCA fixed account. We cannot increase this fee.
On your contract issue date, the Initial Annual Mortality and Expense Risk Fee is
equal to the Initial Base Mortality and Expense Risk Fee plus any fees associated with certain optional benefit riders. On any day after your contract issue date, the Annual Mortality and Expense Risk Fee is equal to the base mortality and expense risk fee plus any fees
associated with certain optional benefit riders. The base mortality and expense risk fee is based on your age band. The Initial Base Mortality and Expense Risk Fee and the Initial Annual Mortality and Expense Risk Fee are shown on your
Contract Data page.
At issue, your age band is based on Your age as of the Application Date. Your age band will not change for the life of the
contract unless there is a “covered life change,” as defined in the “Benefits in Case of Death.” If there is a “covered life change,” your age band will be reset on that date based on the age of the contract owner.
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 21
Standard Death Benefit
Contract Value Death Benefit
For non-qualified contracts only, you can opt out of the Standard Death Benefit and select the Contract Value Death Benefit. The base Mortality and Expense Risk Fee is 0.10% for all ages.
If your contract has the Standard Death Benefit, you may select the following optional death benefit rider for an additional fee. The optional rider fee will be added to your Mortality and Expense Risk
Fee.
Mortality risk arises because of our guarantee to pay a death benefit and our guarantee to make annuity payouts
according to the terms of the contract, no matter how long a specific owner or annuitant lives and no matter how long our entire group of owners or annuitants live. If, as a group, owners or annuitants outlive the life expectancy we
assumed in our actuarial tables, we must take money from our general assets to meet our obligations. If, as a group, owners or annuitants do not live as long as expected, we could profit from the mortality risk fee. We deduct the
mortality risk fee from the subaccounts during the annuity payout period even if the annuity payout plan does not have a life contingent payment.
Expense risk arises because the costs in providing the services to you under the contract may exceed our revenues from
the contract administrative charge. We could profit from the mortality and expense risk fee if future expenses are less than expected.
The subaccounts pay us the mortality and expense risk fee they accrued as
follows:
•
first, to the extent possible, the subaccounts pay this fee from any dividends distributed from the funds in which they
invest;
•
then, if necessary, the funds redeem shares to cover any remaining fees payable.
We may use any profits we realize from the subaccounts’ payment to us of the
mortality and expense risk fee for any proper corporate purpose, including, among others, payment of distribution (selling) expenses.
Benefit Protector Rider Charge
We deduct a charge for this optional feature only if you select it. The current
annual fee is 0.25% of your contract value on your contract anniversary. We prorate this charge among all accounts and subaccounts in the same proportion your interest in each account bears to your total contract value. We will modify this prorated approach to comply with state
regulations when necessary.
If the contract or rider is terminated for any reason except your election to terminate the rider during the 30 day window
after certain anniversaries, we will deduct the charge from the contract value adjusted for the number of calendar days coverage was in place during the contract year.
We cannot increase this annual fee after the rider effective date.
Enhanced Legacy Benefit Charge
We deduct an annual charge from your contract value on your contract anniversary for
this optional feature only if you select it. The current annual rider fee is 1.00%. We prorate this charge among the variable subaccounts, but not the fixed account in the same proportion your interest in each account bears to your total variable account contract value on
your contract anniversary.
Prior to age 86, the charge is calculated on your contract anniversary by multiplying
the annual rider fee by the greater of the ROPP value, ADB value (after any increase is added), MAV or the contract value. On or following age 86, the charge is calculated on your contract anniversary by multiplying the annual rider fee by the greater of the ROPP value,
ADB value or MAV.
22 [RiverSource
PortfolioEdge Advisory Variable Annuity] — Prospectus
Currently the Enhanced Legacy Benefit fee does not vary with the investment option selected; however, we reserve the
right to vary the rider fee for each investment option. The Enhanced Legacy Benefit fee will not exceed a maximum of 1.75%.
The following describes how your annual rider fee may increase:
1.
We may increase the annual rider fee for all approved investment options at our discretion and on a nondiscriminatory
basis. Your annual rider fee will increase if we declare an increase to the fee with written notice 30 days in advance. The new fee will be in effect on the date we declare in
the written notice. You can terminate this rider if we receive your written request prior to the date of the fee increase. Currently the Enhanced Legacy Benefit fee
does not vary with the investment option selected.
2.
The annual rider fee associated with a specified investment option may change at our discretion. If you are invested in
any investment option that has an increase in the associated annual rider fee, your annual rider fee will increase. If you change your investment allocation to an investment
option not affected by a fee increase, this move will count against the number of transfers allowed. We do not currently limit the number of transfers allowed each contract
year.
If your rider fee changes during the contract year, on the next contract anniversary we will calculate an average rider fee for the preceding contract year only that reflects the various different fees that were in effect for each investment option in that year, adjusted for the number of calendar days each fee was in effect and the percentage of contract value
allocated to each investment option.
If your contract or rider is terminated for any reason, the rider charge will be deducted, adjusted for the number of days
coverage was in place during the contract year, and further charges for this rider will terminate.
The fee does not apply after the annuitization start date.
There are deductions from and expenses paid out of the assets of the funds that are
described in the prospectuses for those funds.
Certain state and local governments impose premium taxes on us (up to 3.5%). These
taxes depend upon your state of residence or the state in which the contract was issued. Currently, we deduct any applicable premium tax when annuity payouts begin, but we reserve the
right to deduct this tax at other times such as when you make purchase payments or when you make a full
surrender from your contract.
We value your accounts as follows:
We value the amounts you allocate to the fixed account directly in dollars. The value of the fixed account equals:
•
the sum of your purchase payments allocated to the Special DCA fixed account;
•
plus interest credited;
•
minus the sum of amounts surrendered and amounts transferred out;
•
minus any
prorated portion of the contract administrative charge; and
•
minus any prorated portion of the charge for any of the following optional benefits you have selected:
–
Benefit Protector Death Benefit or
–
Enhanced Legacy Benefit.
We convert amounts you allocated to the subaccounts into accumulation units. Each
time you make a purchase payment or transfer amounts into one of the subaccounts, we credit a certain number of accumulation units to your contract for that subaccount. Conversely, we subtract a certain number of accumulation units from your contract each
time you take a partial surrender, transfer amounts out of a subaccount, or we assess a contract administrative charge or fee for any optional riders with annual charges (if applicable).
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 23
The accumulation units are
the true measure of investment value in each subaccount during the accumulation period. They are related to, but not the same as, the net asset value of the fund in which the
subaccount invests. The dollar value of each accumulation unit can rise or fall daily depending on the variable account expenses, performance of the fund and on certain fund expenses. Here is how we calculate accumulation unit values:
Number of units: to calculate the number of accumulation units for a
particular subaccount we divide your investment by the current accumulation unit value.
Accumulation unit value: the current accumulation unit value for
each subaccount equals the last value times the subaccount’s current net investment factor. We calculate the accumulation unit value of each subaccount on each valuation date. If your contract anniversary is not a valuation date, your contract value for that contract anniversary will be based on close of business values on the next valuation date.
We determine the net investment factor by:
•
adding the fund’s current net asset value per share, plus the per share amount of any dividend or capital gain
distribution to obtain a current adjusted net asset value per share; then
•
dividing that sum by the previous adjusted net asset value per share; and
•
subtracting the percentage factor representing the mortality and expense risk fee from the result.
Because the net asset value of the fund may fluctuate, the accumulation unit value
may increase or decrease. You bear all the investment risk in a subaccount.
Factors that affect subaccount accumulation units: accumulation
units may change in two ways — in number and in value.
The number of accumulation units you own may fluctuate due to:
•
additional purchase payments you allocate to the subaccounts;
•
transfers into
or out of the subaccounts;
and a deduction of a prorated portion of:
•
the contract administrative charge; and
•
the charge for any of the following optional benefits you have selected:
–
Benefit
Protector Death Benefit; or
–
Enhanced Legacy Benefit.
Accumulation unit values will fluctuate due to:
•
changes in fund net asset value;
•
fund dividends distributed to the subaccounts;
•
fund capital gains or losses;
•
fund operating expenses; and/or
•
mortality and expense risk fees.
Making the Most of Your Contract
Automated Dollar-Cost Averaging
Currently, you can use automated transfers to take advantage of dollar-cost averaging (investing a fixed amount at
regular intervals). For example, you might transfer a set amount monthly from a relatively conservative subaccount to a more aggressive one, or to one or more subaccounts. You can also obtain the benefits of dollar-cost averaging by setting
up regular automatic payments under a scheduled payment plan. There is no charge for dollar-cost averaging.
This systematic approach can help you benefit from fluctuations in accumulation unit values caused by fluctuations in
the market values of the funds. Since you invest the same amount each period, you automatically acquire more units when the market value falls and fewer units when it rises. The potential effect is to lower your average cost per unit.
24 [RiverSource PortfolioEdge Advisory Variable
Annuity] — Prospectus
How
dollar-cost averaging works
By investing an equal number of dollars each month |
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more units when the
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and fewer units
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You paid an average price of $17.91 per unit over the 10 months, while the
average market price actually was $18.10.
Dollar-cost averaging
does not guarantee that any subaccount will gain in value nor will it protect against a decline in value if market prices fall. Because dollar-cost averaging involves continuous
investing, your success will depend upon your willingness to continue to invest regularly through periods of low price levels. Dollar-cost averaging can be an effective way to help meet your long-term goals. For specific features, contact your financial advisor.
You can ask us in writing to automatically rebalance the subaccount portion of your
contract value either quarterly, semiannually, or annually. The period you select will start to run on the date we record your request. On the first valuation date of each of these periods, we automatically will rebalance your contract value so that the value in each
subaccount matches your current subaccount percentage allocations. These percentage allocations must be in whole numbers. There is no charge for asset rebalancing. The contract value must be at least $2,000.
You can change your percentage allocations or your rebalancing period at any time by contacting us in writing. We will restart the rebalancing period you selected as of the date we record your change. You also can ask us in writing to stop
rebalancing your contract value. You must allow 30 days for us to change any instructions that currently are in place. For more information on asset rebalancing, contact your financial advisor.
Transferring Among Accounts
The transfer rights discussed in this section do not apply if you have selected the
Enhanced Legacy Benefit, unless noted otherwise. For transfer rights involving investment options under the Enhanced Legacy
Benefit, please see “Appendix A: Funds Available Under the Enhanced Legacy Benefit” section.
You may transfer contract value among the subaccounts before the annuitization start
date. You cannot transfer contract value into the Special DCA fixed account. The Special DCA fixed account requires automated monthly transfers into the subaccounts you select.
The date your request to transfer will be processed depends on when and how we
receive it:
For transfer requests received in
writing:
•
If we receive your transfer request at our Service Center in good order before the close of the NYSE (4:00 pm Eastern
time unless the NYSE closes earlier), we will process your transfer using the accumulation unit value we calculate on the valuation date we received your transfer request.
•
If we receive your transfer request at our Service Center in good order at or after the close
of the NYSE (4:00 pm Eastern time unless the NYSE closes earlier), we will process your transfer using the accumulation unit value we calculate on the next valuation date after we received your transfer request.
For transfer requests received by phone:
•
If we receive your transfer request at our Service Center in good order before the close of
the NYSE (4:00 pm Eastern time unless the NYSE closes earlier), we will process your transfer using the accumulation unit value we calculate on the valuation date we received your transfer request.
•
If we receive your transfer request at our Service Center in good order at or after the close
of the NYSE (4:00 pm Eastern time unless the NYSE closes earlier), we will process your transfer using the accumulation unit value we calculate on the next valuation date after we received your transfer request.
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 25
If you were not able to
complete your transaction before the close of business for any reason, including telephone service interruptions or delays due to high call volume, we will process your
transaction using the accumulation unit value we calculate on the next valuation date.
There is no charge for transfers. Before making a transfer, you should consider the risks involved in changing investments.
We may suspend or modify Your transfer privileges at any time with written notice. We
reserve the right to limit the number of transfers allowed each contract year. The limit will not be less than 12 transfers per contract year.
For information on transfers after annuity payouts begin, see “Transfer policies” below.
•
Before the annuitization start date, you may transfer contract values between the subaccounts at any time.
•
You may not transfer contract values from the subaccounts into the Special DCA fixed account. However, you may transfer
contract values as automated monthly transfers from the Special DCA fixed account to the subaccounts, or for the Enhanced Legacy Benefit to the selected approved investment options. (See “Special DCA Fixed Account.”)
•
After the annuitization start date, you may make transfers once per contract year among the
subaccounts. During the annuity payout period, we reserve the right to limit the number of subaccounts in which you may invest. On the annuitization start date, the Special DCA fixed account is no longer available.
Market timing can reduce the value of your investment in the contract. If market
timing causes the returns of an underlying fund to suffer, contract value you have allocated to a Subaccount that invests in that underlying fund will be lower too. Market timing can cause you, any joint owner of the contract and your beneficiary(ies) under the contract a
financial loss.
We seek to prevent market timing. Market timing is frequent or short-term trading activity. We do not accommodate short-term trading activities. Do not buy a contract if you wish to use short-term trading strategies to manage your investment. The market timing policies and procedures described below apply to transfers among the Subaccounts within the contract. The underlying funds in which the Subaccounts invest have their own market timing policies and procedures. The market timing policies of the underlying funds may be more restrictive than the market timing policies and procedures we apply to transfers among the Subaccounts of the contract, and may include redemption fees. We reserve the right to modify our market timing policies and procedures at any time without prior notice to you.
Market timing may hurt the performance of an underlying fund in which a Subaccount invests in several ways, including
but not necessarily limited to:
•
diluting the value of an investment in an underlying fund in which a Subaccount invests;
•
increasing the transaction costs and expenses of an underlying fund in which a Subaccount
invests; and
•
preventing the
investment adviser(s) of an underlying fund in which a Subaccount invests from fully investing the assets of the Fund in accordance with the Fund’s investment
objectives.
Funds available as investment options under the contract that invest in securities that trade in overseas securities
markets may be at greater risk of loss from market timing, as market timers may seek to take advantage of changes in the values of securities between the close of overseas markets and the close of U.S. markets. Also, the risks of market
timing may be greater for underlying funds that invest in securities such as small cap stocks, high yield bonds, or municipal securities, that may be traded infrequently.
In order to help protect you and the underlying funds from the potentially harmful effects of market timing activity, we apply the following market timing policy to discourage frequent transfers of contract value among the Subaccounts of the Variable Account:
We try to distinguish market timing from transfers that we believe are not harmful, such as periodic rebalancing for
purposes of an asset allocation, dollar-cost averaging and asset rebalancing program that may be described in this prospectus. There is no set number of transfers that constitutes market timing. Even one transfer in related accounts
may be market timing. We seek to restrict the transfer privileges of a contract owner who makes more than three Subaccount transfers in any 90-day period. We also reserve the right to refuse any transfer request, if, in our sole
judgment, the dollar amount of the transfer request would adversely affect unit values.
If we determine, in our sole judgment, that your transfer activity constitutes market timing, we may modify, restrict or suspend your transfer privileges to the extent permitted by applicable law, which may vary based on the state law that
applies to your contract and the terms of your contract. These restrictions or modifications may include, but not be limited to:
•
requiring
transfer requests to be submitted only by first-class U.S. mail;
26 [RiverSource PortfolioEdge Advisory Variable
Annuity] — Prospectus
•
not accepting
hand-delivered transfer requests or requests made by overnight mail;
•
not accepting telephone or electronic transfer requests;
•
requiring a minimum time period between each transfer;
•
not accepting
transfer requests of an agent acting under power of attorney;
•
limiting the dollar amount that you may transfer at any one time;
•
suspending the transfer privilege; or
•
modifying
instructions under an automated transfer program to exclude a restricted fund if you do not provide new instructions.
Subject to applicable
state law and the terms of each contract, we will apply the policy described above to all contract owners uniformly in all cases. We will notify you in writing after we impose
any modification, restriction or suspension of your transfer rights.
Because we exercise discretion in applying the restrictions described above, we cannot guarantee that we will be able to identify and restrict all market timing activity. In addition, state law and the terms of some contracts may prevent us
from stopping certain market timing activity. Market timing activity that we are unable to identify and/or restrict may impact the performance of the underlying funds and may result in lower contract values.
In addition to the market timing policy described above, which applies to transfers among the Subaccounts within your contract, you should carefully review the market timing policies and procedures of the underlying funds. The market timing policies and procedures of the underlying funds may be materially different than those we impose on transfers among the Subaccounts within your contract and may include mandatory redemption fees as well as other measures to discourage frequent transfers. As an intermediary for the underlying funds, we are required to assist them in applying their market timing policies and procedures to transactions involving the purchase and exchange of Fund shares. This assistance may include but not be limited to providing the underlying fund upon request with your Social Security Number, Taxpayer Identification Number or other United States government-issued identifier and the details of your contract transactions involving the underlying fund. An underlying fund, in its sole discretion, may instruct us at any time to prohibit you from making further transfers of contract value to or from the underlying fund, and we must follow this instruction. We reserve the right to administer and collect on behalf of an underlying fund any redemption fee imposed by an underlying fund. Market timing policies and procedures adopted by underlying funds may affect your investment in the contract in several ways, including but not limited to:
•
Each Fund may restrict or refuse trading activity that the Fund determines, in its sole
discretion, represents market timing.
•
Even if we determine that your transfer activity does not constitute market timing under the
market timing policies described above which we apply to transfers you make under the contract, it is possible that the underlying fund’s market timing policies and procedures, including instructions we receive from a Fund, may require us to reject your
transfer request. For example, we will attempt to execute transfers permitted under any asset allocation, dollar-cost averaging and asset rebalancing programs that may be described in this prospectus, we cannot guarantee that an
underlying fund’s market timing policies and procedures will do so. Orders we place to purchase Fund shares for the Variable Accounts are subject to acceptance by the Fund. We reserve the right to reject without prior notice to you any
transfer request if the Fund does not accept our order.
•
Each underlying fund is responsible for its own market timing policies, and we cannot
guarantee that we will be able to implement specific market timing policies and procedures that a Fund has adopted. As a result, a Fund’s returns might be adversely affected, and a Fund might terminate our right to offer its shares through the Variable Account.
•
Funds that are available as investment options under the contract may also be offered to
other intermediaries who are eligible to purchase and hold shares of the Fund, including without limitation, separate accounts of other insurance companies and certain retirement plans. Even if we are able to implement a Fund’s market timing policies,
we cannot guarantee that other intermediaries purchasing that same Fund’s shares will do so, and the returns of that Fund could be adversely affected as a result.
For more information about the market timing policies and
procedures of an underlying fund, the risks that market timing pose to that Fund, and to determine whether an underlying fund has adopted a redemption fee, see
that Fund’s prospectus.
How to Request a Transfer or Surrender
1 By automated transfers and automated partial surrenders
Your financial advisor can help you set up automated transfers among your
subaccounts or automated partial surrenders from the Special DCA fixed account or the subaccounts.
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 27
You can start or stop this
service by written request or other method acceptable to us. You must allow 30 days for us to change any instructions that are currently in place.
•
Automated surrenders may be restricted by applicable law under some contracts.
•
You may not
make additional systematic payments if automated partial surrenders are in effect.
•
If you have the Enhanced Legacy
Benefit rider, you are not allowed to set up automated transfers except in connection with a Special DCA fixed account (see "Special DCA Fixed Account" and "Appendix A: Funds
Available Under the Enhanced Legacy Benefit ").
•
Automated partial surrenders may result in income taxes and penalties on all or part of the amount surrendered.
•
The balance in any account from which you make an automated transfer or automated partial
surrender must be sufficient to satisfy your instructions. If not, we will suspend your entire automated arrangement until the balance is adequate.
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$250 or entire account balance |
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Contract value or entire account balance |
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Send your name, contract number, Social Security Number or Taxpayer Identification Number* and signed request for a
transfer or surrender to:
RiverSource Life Insurance Company
70100 Ameriprise Financial Center
Minneapolis, MN 55474
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$250 or entire account balance** |
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Contract value or entire account balance |
*
Failure to provide your Social Security Number or Taxpayer Identification Number may result in mandatory tax withholding on the taxable portion of the distribution.
**
The contract value after a partial surrender must be at least $500.
We answer telephone requests promptly, but you may experience delays when the call
volume is unusually high. If you are unable to get through, use the mail procedure as an alternative.
We will honor any telephone transfer or surrender requests that we believe are
authentic and we will use reasonable procedures to confirm that they are. This includes asking identifying questions and recording calls. As long as we follow the procedures, we (and our affiliates) will not be liable for any loss resulting from fraudulent requests.
Telephone transfers or surrenders are automatically available. You may request that
telephone transfers or surrenders not be authorized from your account by writing to us.
28 [RiverSource PortfolioEdge Advisory Variable
Annuity] — Prospectus
Surrenders
You may surrender all or part of your contract at any time before the annuitization
start date by sending us a written request or calling us.
The date your surrender request will be processed depends on when and how we receive it:
For surrender requests received in writing:
•
If we receive your surrender request at our Service Center in good order before the close of the NYSE (4:00pm Eastern
time unless the NYSE closes earlier), we will process your surrender using the accumulation unit value we calculate on the valuation date we received your surrender
request.
•
If we receive
your surrender request at our Service Center in good order at or after the close of the NYSE (4:00pm Eastern time unless the NYSE closes earlier), we will process your surrender
using the accumulation unit value we calculate on the next valuation date after we received your surrender request.
For surrender requests
received by phone:
•
If we receive
your surrender request at our Service Center in good order before the close of the NYSE (4:00pm Eastern time unless the NYSE closes earlier), we will process your surrender using
the accumulation unit value we calculate on the valuation date we received your surrender request.
•
If we receive your surrender request at our Service Center in good order at or after the
close of the NYSE (4:00pm Eastern time unless the NYSE closes earlier), we will process your surrender using the accumulation unit value we calculate on the next valuation date after we received your surrender request.
If you were not able to complete your transaction before the close of business for
any reason, including telephone service interruptions or delays due to high call volume, we will process your transaction using the accumulation unit value we calculate on the next valuation date.
We may ask you to return the contract. You may have to pay a contract administrative charge or any applicable optional
rider charges (see “Charges
and Adjustments”) and federal income taxes and penalties. State and local income taxes may also apply (see “Taxes”). You cannot make surrenders after the
annuitization start date except if you elect an annuity payout plan with guaranteed payouts.
Any partial surrender you take under the contract will reduce your contract value. As
a result, the value of your death benefit or any optional benefits you have elected also will be reduced.
In addition, surrenders you are required to take to satisfy the RMDs under the Code may reduce the value of certain
death benefits and optional benefits (see “Taxes – Qualified Annuities – Required Minimum Distributions”).
If you have a balance in more than one account and you request a partial surrender,
we will automatically surrender money from all your subaccounts or the Special DCA fixed account in the same proportion as your value in each account correlates to your total contract value, unless requested otherwise. The minimum contract value after partial surrender
is $500.
•
request that payment be sent electronically to your bank;
•
pre-authorization required.
2 By regular or express mail
•
mailed to address of record.
NOTE: We will charge you a fee if you request express mail delivery.
We may choose to permit you to have checks issued and delivered to an alternate payee or to an address other than your
address of record. We may also choose to allow you to direct wires or other electronic payments to accounts owned by a third-party. We may have additional good order requirements
that must be met prior to processing requests to make any payments to a party other than the owner or to an address other than the address of record. These requirements will be designed to ensure owner instructions are genuine and to prevent fraud.
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 29
Normally, we will send the
payment within seven days after receiving your request in good order. However, we may postpone the payment if:
–
the NYSE is closed, except for normal holiday and weekend closings;
–
trading on
the NYSE is restricted, according to SEC rules;
–
an emergency, as defined by SEC rules, makes it impractical to sell securities or value the
net assets of the accounts; or
–
the SEC permits us to delay payment for the protection of security holders.
We may also
postpone payment of the amount attributable to a purchase payment as part of the total surrender amount until cleared from the originating financial institution.
This contract can be purchased as a qualified annuity used to fund one of the
following tax-deferred retirement plans (subject to applicable federal law and any rules of the plan itself):
•
Individual Retirement Annuities (IRAs) including inherited IRAs under Section 408(b) of the
Internal Revenue Code of 1986 (the Code)
•
Roth IRAs including inherited Roth IRAs under Section 408A of the Code
•
SIMPLE IRAs
under Section 408(p) of the Code
•
Simplified Employee Pension IRA (SEP) plans under Section 408(k) of the Code
•
Custodial
account for grandfathered plans and investment only accounts maintained for qualified retirement plans under Section 401(a) of the Code, including investment only pooled defined
benefit plans
•
Tax-Sheltered Annuities (TSAs) under section 403(b) of the Code
Participants in Tax-Sheltered Annuities
If the Contract is intended to be used in connection with an employer
sponsored 403(b) plan, additional rules relating to this Contract can be found in the annuity endorsement for tax sheltered 403(b) annuities. Unless We have made special arrangements with Your employer, the Contract is not intended for use in connection with an employer sponsored 403(b)
plan that is subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). In the event that the employer either by affirmative election or
inadvertent action causes contributions under a plan that is subject to ERISA to be made to this Contract, We will not be responsible for any obligations and requirements under
ERISA and the regulations thereunder, unless We have prior written agreement with the employer. You should consult with Your employer to determine whether Your 403(b) plan is subject to ERISA.
In the event We have a written agreement with Your employer to administer the plan pursuant to ERISA, special rules apply as set forth in the TSA endorsement.
The employer must comply with certain nondiscrimination requirements for certain types of contributions under a TSA
contract to be excluded from taxable income. You should consult Your employer to determine whether the
nondiscrimination rules apply to You.
The Code imposes certain restrictions on Your right to receive early distributions from a TSA:
•
Distributions attributable to salary reduction contributions (plus earnings) made after Dec.
31, 1988, or to transfers or rollovers from other contracts, may be made from the TSA only if:
–
You are at least age 59½;
–
You are
disabled as defined in the Code;
–
You severed employment with the employer who purchased the Contract;
–
the
distribution is because of Your death;
–
the distribution is due to plan termination;
–
You are a
qualifying military reservist;
– You are terminally ill as defined in the Code;
– You are adopting or are having a baby;
– You are supplying Personal or Family
Emergency Expense;
– You
are a Domestic Abuse Victim; or
–
You are in need to cover Expenses and losses on account of a FEMA declared disaster.
30 [RiverSource
PortfolioEdge Advisory Variable Annuity] — Prospectus
•
If You
encounter a financial hardship (as provided by the Code), You may be eligible to receive a distribution of all contract values attributable to salary reduction contributions made
after Dec. 31, 1988, but not the earnings on them.
•
Even though a distribution may be permitted under the above rules, it may be subject to IRS
taxes and penalties (see “Taxes”).
•
The above restrictions on distributions do not affect the availability of the amount credited
to the contract as of Dec. 31, 1988. The restrictions also do not apply to transfers or exchanges of contract value within the contract, or to another registered variable annuity contract or investment vehicle available through the employer.
•
Loans are not allowed under this Contract.
Considerations for
investment only pooled defined benefit plans under Section 401(a) of the Code
RiverSource Life is the issuer of the Contract; it is not the plan administrator. It
is the responsibility of the plan administrator to:
•
Track individual participants and their portion of the plan.
•
Perform or provide any plan recordkeeping services with respect to the qualified plan.
Below are key considerations to understand when using an annuity with a pooled defined benefit plan:
It is important to consider any liquidity needs of the plan when determining the
amount that is invested into an annuity. The plan sponsor is responsible to ensure they have enough funds for the participant benefit payments. Loans are not available for defined benefit qualified annuities.
Annuity Owner and Annuitant
For defined benefit qualified annuities, the owner must be the plan sponsor. The
annuitant must be a person and needs to be designated when the contract is established. Important factors to consider:
•
The annuitant’s age will be used for any annuity provision or benefit.
•
The mortality
and expense risk fee and the base contract death benefit may vary depending on the age of the annuitant.
•
Changing the annuitant is not allowed even if the selected person is no longer associated
with the plan.
•
If the
annuitant dies, the death benefit is payable, and any benefits will be paid to the plan.
•
The Annuitization Start Date (ASD), is the date annuity payments are scheduled to begin based on the annuitant’s
life. The ASD is the later of the annuitant’s 95th birthday or the contract’s 10-year anniversary. Currently, you can change the ASD up to a maximum age of 105.
•
Mortality & Expense (M&E) fees – may vary by death benefit option and annuitant’s issue age.
•
Subaccount management fees – vary by fund and do not apply to the Special DCA Fixed
Account.
•
Contract
administrative charge – $50 deducted from contract value on contract anniversary; waived on contract values of $50,000 or more. We reserve the right to change the annual
contract administrative charge after the first contract anniversary,
•
Optional death
benefits – for an additional fee, you may purchase an optional death benefit rider that can help protect or even grow the death benefit value.
Required
Minimum Distributions (RMDs)
It’s important to consider the
following:
•
It is the responsibility of the plan administrator to determine the amount, timing and source of RMDs for each
participant in accordance with applicable laws and plan documents.
•
Any RMD
distributions will follow our standard processing rules for an individual.
If you have a nonqualified annuity and are a natural person (excluding a revocable
trust), you may change the annuitant or contingent annuitant if the request is made prior to the annuitization start date and while the existing annuitant or contingent annuitant is living. The change will become binding on us when we receive it. If you and the annuitant are not
the same person and the annuitant dies before the annuitization start date, the owner becomes the annuitant unless a
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 31
contingent annuitant has
been previously selected. You may not change the annuitant if you have a qualified annuity or there is non-natural or revocable trust ownership. For contracts issued in
California, if you have the Enhanced Legacy Benefit, you may not change the annuitant while this rider is in force.
You may change ownership of your nonqualified annuity at any time by completing a
change of ownership form we approve and sending it to our Service Center. We will honor any change of ownership request received in good order that we believe is authentic, and we will use reasonable procedures to confirm authenticity. If we follow these procedures,
we will not take any responsibility for the validity of the change.
If you have a nonqualified annuity, you may incur income tax liability by transferring, assigning or pledging any part of it. (See “Taxes.”)
If you have a qualified annuity, you may not sell, assign, transfer, discount or pledge your contract as collateral for a
loan, or as security for the performance of an obligation or for any other purpose except as required or permitted by the Code. However, if the owner is a trust or custodian, or an employer acting in a similar capacity, ownership of the
contract may be transferred to the annuitant.
Please consider carefully whether or not you wish to change ownership of your annuity contract. If you elected any
optional contract features or riders and any owner was not an owner before the change, all owners (including any prior owner who is still an owner after the ownership change) will be subject to all limitations and/or restrictions of those
features or riders just as if they were purchasing a new contract.
The death benefit may change due to a change of ownership.
•
If you have the Enhanced Legacy Benefit, joint ownership and joint annuitants are not allowed while this rider is in
force. For contracts issued in all states except California, if any owner is age 75 or younger immediately following the ownership change, the rider will continue and the benefit amount may be reset. An assignment or change of ownership may
also be made to a non-natural owner (e.g. an individual ownership changed to an irrevocable trust) or to a revocable trust, with either holding for the sole benefit of the prior
owner. Assignments and ownership changes other than these will terminate the rider. For contracts issued in California, the benefits provided under the rider are only payable at the annuitant’s death. You may not change the annuitant while this rider is in force, unless you are
the annuitant and your spouse becomes the owner and annuitant under the spousal continuation provision. An
ownership change will not terminate the rider or reset the benefit amount.
•
If you have the Benefit Protector rider, if any owner is older than age 75 immediately
following the ownership change, the rider will terminate upon change of ownership. If all owners are younger than age 76, the rider continues unless the owner chooses to terminate it during the 30-day window following the effective date of the ownership change. The
Benefit Protector death benefit values may be reset (see “Optional Death Benefits – Benefit Protector Death Benefit Rider”).
•
If you elected the MAV Death Benefit and if any owner is older than age 80 immediately
following the ownership change, this rider will terminate and the Standard Death Benefit will apply. If all owners are age 80 or younger, the MAV Death Benefit will continue.
•
The Standard
Death Benefit may change following the ownership change. If all owners are age 80 or younger immediately following the ownership change, the Standard Death Benefit will be the
Maximum 3-Year Anniversary Value death benefit. If any owner is older than age 80 immediately following the ownership change, the Standard Death Benefit will be Return of Purchase Payments death benefit.
•
The Standard Death
Benefit and MAV Death Benefit
values may be reset (see “Benefits in the Case of Death”).
•
If the owner is in a different age band or the death benefit that applies to your contract
changes due to an ownership change, the mortality and expense risk fee may change as well (see “Charges and Adjustments – Mortality and Expense Risk Fee”).
32 [RiverSource PortfolioEdge Advisory Variable
Annuity] — Prospectus
Benefits Available Under the Contract
The
following table summarizes information about the benefits available under the Contract.
| |
|
|
|
Brief Description of Restrictions/
Limitations |
Standard Benefits (no additional charge) |
| |
Allows the systematic
transfer of a specified
dollar amount among
the subaccounts |
|
|
•Transfers not available to the Special DCA Fixed Account |
Special Dollar
Cost Averaging
(SDCA) |
Allows the systematic
transfer from the
Special DCA Fixed Account to one or more
eligible subaccounts |
|
|
•Only available for 180 days from the contract issue date •Must be funded with a purchase
payment, not transferred contract value •Only 6-month and 12-month options
are available
•Transfers occur on a monthly basis and the first monthly transfer occurs one day after we receive your purchase payment •You may not use the Special DCA
Fixed Account as a destination for
the Special DCA monthly transfer |
| |
Allows you to have your
investments
periodically rebalanced
among the
subaccounts to your pre-selected percentages |
|
|
•You must have $2,000 in Contract
Value to participate •We require 30 days’ notice for you
to change or cancel the program
•You can request rebalancing to be done either quarterly, semiannually or annually |
Automated
Partial
Surrenders |
Allows automated
partial surrenders from the contract |
|
|
•Additional systematic payments are not allowed with automated partial
surrenders •May result in income taxes and IRS
penalty on all or a portion of the
amounts surrendered |
| |
For Contract Owners
age 80 or younger: Pays a death benefit to Your Beneficiary(ies) equal to the greater of (1) the contract value (adjusted for any rider charges), (2) the ROPP Value, or (3) the Maximum 3-Year Anniversary Value For Contract Owners age 81 or older: Pays a
death benefit to Your
Beneficiary(ies) equal
to the greater of the
contract value
(adjusted for any rider
charges) or the ROPP |
|
|
•Withdrawals will proportionately
reduce the benefit, which means
your benefit could be reduced by
more than the dollar amount of your
withdrawals, and such reductions
could be significant
•Annuitizing the Contract terminates the benefit |
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 33
| |
|
|
|
Brief Description of Restrictions/
Limitations |
| |
|
|
|
|
Contract Value Death Benefit |
Provides a minimum
death benefit equal to
the Contract Value |
|
|
•Annuitizing the Contract terminates the benefit •Only available for non-qualified
contracts |
| |
| |
Increases the
guaranteed death
benefit to the highest
anniversary contract value, adjusted for any
partial surrenders |
0.25% of average daily variable account value |
|
•Available to owners age 80 and younger •Must be elected at contract issue
•Not available with Enhanced Legacy Benefit or Contract Value Death Benefit •No longer eligible to increase on
any contract anniversary on/after
your 84th birthday
•Withdrawals will proportionately reduce the benefit, which means your benefit could be reduced by more than the dollar amount of your withdrawals, and such reductions could be significant •Annuitizing the Contract terminates
the benefit |
Benefit Protector
Death Benefit |
Provides an additional
death benefit, based
on a percentage of
contract earnings, to
help offset expenses
after death such as
funeral expenses or
federal and state taxes |
|
|
•Available to owners age 75 and younger •Must be elected at contract issue
•Available with the Standard Death
Benefit or MAV •For contract owners under age 70
at issue, the benefit is 40% of
earnings
•For contract owners age 70 and older at issue, the benefit is 25% of earnings •Annuitizing the Contract terminates
the benefit |
Enhanced
LegacySM
Benefit |
Increases the
guaranteed death
benefit to the greater
of the MAV (i.e. the
highest anniversary
contract value) and ADB value (i.e purchase payments compounded at 5%), adjusted for any partial
surrenders |
1.75% of contract value
or guaranteed
death benefit
amount,
whichever is
greater (on or
after age 86,
1.75% of
guaranteed
death benefit
only) |
|
•Available to owners age 75 and
younger
•Available with the Standard Death
Benefit
•Must be elected at contract issue •Not available with any other death
benefit rider
•Subject to Investment Allocation restrictions •No longer eligible to increase on
any contract anniversary on or after
your 81st (for ADB value) or 86th
(for MAV) birthday
•Withdrawals will proportionately reduce the benefit, which means |
34 [RiverSource PortfolioEdge Advisory Variable
Annuity] — Prospectus
| |
|
|
|
Brief Description of Restrictions/
Limitations |
| |
|
|
|
your benefit could be reduced by more than the dollar amount of your withdrawals, and such reductions could be significant •Annuitizing the Contract terminates
the benefit |
Benefits in Case of Death
We will pay the death benefit to your beneficiary upon your death if you die before the Annuitization Start Date and the
Contract Value is greater than zero. If a Contract has more than one person as the owner, We will pay benefits upon the first to die of any owner. If the joint owners are spouses, the surviving spouse will be treated as the sole primary
beneficiary. Further, a spousal joint owner may have the right to continue the Contract in force upon your death (see “Spousal Continuation”).
All contracts include a Standard Death Benefit; however, non-qualified contracts can elect to opt out of the Standard Death Benefit and instead receive the
Contract Value Death Benefit for a reduced mortality and expense risk charge. If you select the Contract Value Death Benefit, your beneficiary will only receive the Contract
Value which is impacted by investment performance and charges. You will not have a guaranteed return of purchase payments at death.
The Standard Death Benefit varies by age. If you
are age 80 or younger on the application date or the date of the most recent covered life change, the Standard Death Benefit is the Maximum 3-Year Anniversary Value (3-Year MAV)
Death Benefit. If you are age 81 or older on the application date or the date of the most recent covered life change, the Standard Death Benefit is the Return of Purchase Payments (ROPP) Death Benefit.
If you have the 3-Year MAV Death Benefit and if you die prior to the Annuitization Start Date with a Contract Value greater than zero, we will pay the beneficiary the greatest of the following amounts:
•
the Contract Value, after any applicable charges are deducted as of the day we receive due proof of death; or
•
the Maximum 3-Year Anniversary Value (3-Year MAV) Value, which is explained
below.
If you have the ROPP Death Benefit and you die prior to the Annuitization Start Date with a Contract Value greater than zero, we will pay the beneficiary the greater of the following amounts:
•
the Contract Value, after any applicable charges are deducted as of the day we receive due proof of death; or
•
the ROPP Value, which is explained below.
If you have a
non-qualified contract and elect the Contract Value Death Benefit and if you die prior to the Annuitization Start Date, we will pay the beneficiary the Contract Value, after any applicable charges are deducted as of the day we receive due proof of death.
Here are some terms that are used to describe the Standard Death Benefit and optional death benefits:
ROPP Value: is the initial purchase payment on the contract issue date. Additional purchase payments
will be added to the ROPP value. Adjusted partial surrenders will be subtracted from the ROPP value.
3-Year MAV Value: equals the ROPP Value prior to the third contract anniversary. Every third contract anniversary prior to the earlier of
your 84th birthday or your death, we compare the 3-Year MAV to the current contract value and we reset the 3-Year MAV to the higher amount. The 3-Year MAV is increased by any
additional purchase payments and reduced by adjusted partial
surrenders.
Adjusted partial surrenders |
|
|
| |
| |
|
the amount your contract value is reduced by the partial surrender. |
| |
|
the applicable ROPP value, 3-Year MAV value, or MAV value on the date of (but prior to) the partial surrender. |
| |
|
the contract value on the date of (but prior to) the partial surrender. |
If you take a partial surrender, the applicable ROPP, 3-Year MAV, or MAV
value will be reduced proportionally based on the percentage of contract value that is withdrawn. This means that if the contract value is higher than the ROPP, 3-Year MAV, or MAV value at the time of a partial surrender, then the ROPP, 3-Year MAV, or MAV value is reduced by an
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 35
amount that
is less than the dollar amount withdrawn. Conversely, if the contract value is lower than the ROPP, 3-Year MAV, or MAV value at the time of a partial surrender, then the ROPP,
3-Year MAV, or MAV value is reduced by an amount that is more than the dollar amount withdrawn.
Covered Life Change: is either continuation of the contract by a spouse under the spousal continuation provision, or an ownership change
where any owner after the ownership change was not an owner prior to the change.
For a spouse who continues the contract, the Standard Death Benefit depends on the spouse’s age at continuation. If
the spouse is age 80 or younger, the Standard Death Benefit will be 3-Year MAV, otherwise the Standard Death Benefit will be ROPP. On the continuation date, we reset the 3-Year MAV and ROPP values to the contract value after any applicable charges are
deducted and after applying any increase to the contract value from the death benefit that
would otherwise have been paid.
After a covered life change other than for a spouse who continues the contract, the Standard Death Benefit depends on
the owner(s) age(s) after the change. If all owners are age 80 or younger, the Standard Death Benefit will be 3-Year MAV, otherwise the Standard Death Benefit will be ROPP. On
the valuation date we receive your request for the covered life change, we compare the 3-Year MAV and ROPP values to the contract value after any applicable charges are
deducted and reset each to that contract value, if less.
Example of Standard 3-Year MAV Death Benefit calculation after a
partial surrender:
•
The total
purchase payments are $20,000, and the 3-Year MAV Value was reset on the third anniversary to $24,000.
•
During the fourth contract year, the contract value falls to $19,000, at which point you take
a $1,500 partial surrender, leaving a contract value of $17,500.
The ROPP Value is adjusted for the partial surrender as follows: |
|
|
| |
ROPP Value prior to the partial surrender: |
|
|
| |
minus the adjusted partial surrender, calculated as: |
|
|
| |
|
|
|
|
| |
|
|
|
| |
|
|
|
The 3-Year MAV Value is adjusted for the partial surrender as follows: |
|
|
| |
3-Year MAV Value prior to the partial surrender: |
|
|
| |
minus the adjusted partial surrender, calculated as: |
|
|
| |
|
|
|
|
| |
|
|
|
| |
for a 3-Year MAV Value of: |
|
|
The death benefit will be the greatest of the following
three values: Contract Value of $17,500, ROPP Value of $18,421, and 3-Year MAV Value of $22,105. This results in a death benefit of $22,105.
If You Die Before the Annuitization Start Date
When paying the beneficiary, we will process the death claim on the valuation date
our death claim requirements are fulfilled. We will determine the contract’s value using the accumulation unit value we calculate on that valuation date. We will mail payment to the beneficiary within seven days after our death claim requirements are fulfilled. Death claim requirements generally include due proof of death and will be detailed in the claim materials we send upon notification
of death.
When paying multiple beneficiaries, we will process the death claim of each beneficiary on the valuation date when a
beneficiary provides us with complete death claim requirements. We will determine a beneficiary’s proceeds using the accumulation unit value we calculate on that valuation date. The remaining contract value remains invested as was
specified at time of death. We pay interest, if any, at a rate no less than required by law. We will mail payment to a beneficiary within seven days after our death claim requirements are fulfilled.
Spousal continuation: If your spouse is sole primary beneficiary and
you die before the annuitization start date, your spouse may keep the contract as owner with the contract value equal to the death benefit that would otherwise have been paid. To do this your spouse must, on the date our death claim requirements are fulfilled, give us written
instructions to continue the contract as owner. Your spouse may make additional purchase
payments.
36 [RiverSource PortfolioEdge Advisory Variable
Annuity] — Prospectus
If you elected any optional
contract features or riders, your spouse will be subject to all limitations and/or restrictions of those features or riders just as if they were purchasing a new contract and the
values may be reset (see “Optional Death Benefits” and “Benefits in Case of Death”). In addition, the age band used to determine the mortality and expense risk fee may change depending on the attained age of the spouse (see “Charges and Adjustments – Annual
Contract Expenses – Mortality and Expense Risk Fee”).
If your beneficiary is not your spouse, or your spouse does not elect spousal continuation, we will pay the beneficiary in a single sum unless you give us other written instructions. Generally, we must fully distribute the death benefit within
five years of your death. However, the beneficiary may receive payouts under any annuity payout plan available under this contract if:
•
the
beneficiary elects in writing, and payouts begin, no later than one year after your death, or other date as permitted by the IRS; and
•
the payout
period does not extend beyond the beneficiary’s life or life expectancy.
The information below has been revised to reflect regulations issued by the Internal Revenue Service that describe the requirements for required minimum distributions when a person or entity inherit assets held in an IRA, 403(b) or
qualified retirement plan. Contract owners are advised to work with a tax professional to understand their required minimum distribution obligations under the regulations and federal law. The regulations can be found in the IRS Notice 2024-35.
•
Spouse beneficiary: If you have not elected an annuity payout plan, and if your spouse is the sole primary beneficiary, your spouse may
either elect to treat the contract as his/her own (spousal continuation), so long as he or she is eligible to do so or elect an annuity payout plan or another plan agreed to by
us. If your spouse elects a payout option, the payouts must begin no later than the year in which you would have reached age 73. If you attained age 73 at the time of death, payouts must begin no later than Dec. 31 of the year following the year of your death.
Your spouse may elect to assume ownership of the contract with the contract value equal to
the death benefit that would otherwise have been paid. To do this your spouse must, on the date our death claim requirements are fulfilled, give us written instructions to continue the contract as owner. If you elected any optional contract features or riders,
your spouse will be subject to all limitations and/or restrictions of those features or riders just as if they were purchasing a new contract and the values may be reset (see “Optional Death Benefits” and “Benefits in Case of Death”). In addition, the age band used to determine the mortality and expense risk fee may change depending on
the attained age of the spouse (see “Charges and Adjustments – Annual Contract Expenses – Mortality and Expense Risk Fee”).
If you purchased this contract as an inherited IRA and your spouse is the sole beneficiary,
he or she can elect to continue this contract as an inherited IRA. Your spouse must follow the schedule of minimum surrenders established based on your life expectancy and must withdraw his or her entire inherited interest by December 31 of the 10th year following
your date of death.
If you purchased this contract as an inherited IRA and your spouse is not the sole beneficiary, he or she can elect an alternative payment plan for his or her share of the death benefit and all optional death benefits will terminate. Your
spouse beneficiary must submit the applicable investment options form. No additional purchase payments will be accepted. The death benefit payable on the death of the spouse beneficiary is the contract value and the mortality and
expense risk fee will be reset based on the spouse's attained age. Your spouse must follow the schedule of minimum surrenders established based on your life expectancy and must
withdraw his or her entire inherited interest by December 31 of the
10th year following your date of death.
•
Non-spouse beneficiary: If you have not elected an annuity payout plan, the beneficiary is required to withdraw his or her entire inherited
interest by December 31 of the 10th year following your date of death unless
they qualify as an “eligible designated beneficiary.” Your beneficiary may be required to take distributions during the 10-year period if you died after your Required Beginning Date, as defined by the Code. Eligible designated beneficiaries may continue to
take proceeds out over your life expectancy if you died prior to your Required Beginning Date or over the greater of your life expectancy or their life expectancy if you died
after your Required Beginning Date. Eligible designated beneficiaries include:
•
a lawful child of the owner under the age of 21 (remaining amount must be withdrawn by the
earlier of the end of the year the minor turns 31 or end of the 10th year following the minor's death);
•
disabled within the meaning of Code section 72(m)(7);
•
chronically
ill within the meaning of Code section 7702B(c)(2);
•
any other person who is not more than 10 years younger than the owner.
However,
non-natural beneficiaries, such as estates and charities, are subject to a five-year rule to distribute the IRA if you died prior to your Required Beginning Date.
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 37
We will
pay the beneficiary in a single sum unless the beneficiary elects to receive payouts under a payout plan available under this contract and:
•
the beneficiary elects in writing, and payouts begin, no later than one year following the
year of your death; and
•
the payout period does not extend beyond December 31 of the 10th year following your death or the applicable life expectancy for an eligible designated beneficiary
•
Spouse and Non-spouse beneficiary: If a beneficiary elects an alternative payment plan which is an inherited IRA, all optional death benefits will terminate. The beneficiary must submit the applicable investment options form. No additional purchase payments will
be accepted. The death benefit payable on the death of the beneficiary is the contract value (however, the morality and expense risk charge is still based on the Standard Death
Benefit).The age band will be reset to reflect the age of the new owner on the date of the Covered Life
Change, which may affect the mortality and expense risk fee charge.
If You Die After the Annuitization Start Date
If you die after the annuitization start date, the amount payable to your beneficiary, if any, will depend on the annuity payment plan elected, subject to adjustment in order to comply with the IRS rules and regulations.
Death of the owner: If the owner is the annuitant and dies after the
annuitization start date, payments cease for lifetime only payment plans. Payments continue to the owner’s beneficiaries for the remainder of any guarantee period or for the lifetime of a surviving joint annuitant, if any.
If the owner is not the annuitant and dies after the annuitization start date, payments continue to the beneficiaries
according to the payment plan in effect.
Death of the annuitant or of a beneficiary receiving payments under an annuity payment plan: If the
owner is not the annuitant and the annuitant dies after the annuitization start date, payments cease for lifetime payment plans. Payments continue to the owner for the remainder of any guarantee period or for the lifetime of a surviving joint
annuitant, if any.
If a beneficiary elects an annuity payment plan as provided under the payment options provision above and dies after
payments begin, payments continue to beneficiaries named by the deceased beneficiary as provided under the change of beneficiary provision for the remainder of any guarantee period. (See “Annuity Payout Plans”)
In any event, amounts remaining payable must be paid at least as rapidly as payments
were being made at the time of such death.
How we handle contracts under unclaimed property laws
Every state has unclaimed property laws which generally declare annuity contracts to be abandoned after a period of inactivity of one to five years from either 1) the contract’s maturity date (the latest day on which income payments may begin under the contract) or 2) the date the death benefit is due and payable. If a contract matures or we determine a
death benefit is payable, we will use our best efforts to locate you or designated beneficiaries. If we are unable to locate you or a beneficiary, proceeds will be paid to the abandoned property division or unclaimed property office of the
state in which the beneficiary or you last resided, as shown in our books and records, or to our state of domicile. Generally, this surrender of property to the state is commonly referred to as “escheatment”. To avoid escheatment, and ensure an effective process for your beneficiaries, it is important that your personal address and beneficiary
designations are up to date, including complete names, date of birth, current addresses and phone numbers, and taxpayer identification numbers for each beneficiary. Updates to your address or beneficiary designations should be sent
to our Service Center.
Escheatment may also be required by law if
a known beneficiary fails to demand or present an instrument or document to claim the death benefit in a timely manner, creating a presumption of abandonment. If your beneficiary
steps forward (with the proper documentation) to claim escheated annuity proceeds, the state is obligated to pay any such proceeds it is holding.
For nonqualified deferred annuities, non-spousal death benefits are generally
required to be distributed and taxed within five years from the date of death of the owner.
The assets held in our general account support the guarantees under your contract, including optional death benefits.
To the extent that we are required to pay you amounts in addition to your contract value under these benefits, such amounts will come from our general account assets. You should be aware that our general account is exposed to the risks
normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. You should also be aware that we issue other types of
insurance and financial products as well, and we also pay
38 [RiverSource
PortfolioEdge Advisory Variable Annuity] — Prospectus
our obligations under these
products from assets in our general account. Our general account is not segregated or insulated from the claims of our creditors. The financial statements contained in the SAI
include a further discussion of the risks inherent within the investments of the general account.
In addition to the Standard Death Benefit, we also offer the following optional death
benefits:
•
Benefit Protector Death Benefit; or
•
Enhanced Legacy Benefit.
The optional death benefits listed above must be elected at the time you purchase your contract. Once you elect a death
benefit, you cannot change it; however, the death benefit that applies to your contract may change due to an ownership change (see “Changing Ownership”) or
continuation of the contract by the spouse under the spousal continuation provision. You cannot elect an optional death benefit if you have elected the Contract Value Death
Benefit.
The death benefit determines the mortality and risk expense fee that is assessed against the subaccounts. We will base
the benefit paid on the death benefit coverage in effect on the date of your death.
If you are age 75 or younger at contract issue and did not opt out of the Standard Death Benefit, you may select one of the following optional death benefits: MAV Death Benefit, Benefit Protector Death Benefit or Enhanced Legacy Benefit. If you select the MAV Death Benefit, you may also select the Benefit Protector Death Benefit. If you are between ages 76-79 at contract issue and did not opt out of the Standard Death Benefit, you may only select the MAV Death Benefit. The death benefits do not provide any additional benefit before the first contract anniversary and may not be appropriate for certain older issue ages because the benefit values may be limited after age 80 for Enhanced Legacy Benefit or age 83 for the MAV Death Benefit. Be sure
to discuss with your financial advisor whether or not these death benefits are appropriate for your situation.
Maximum Anniversary Value (MAV) Death Benefit
The MAV Death Benefit provides that if you die while the contract is in force and
before the annuitization start date, the death benefit will be the greatest of these values:
1.
the contract value
after any rider charges have been deducted;
The MAV equals the ROPP value prior to the first contract anniversary. Every
contract anniversary prior to the earlier of your 84th birthday or your death, we compare the MAV to the current contract value and we reset the MAV to the higher amount. The MAV is increased by any additional purchase payments and reduced by adjusted partial surrenders as described
above in the “Benefits in Case of Death” section.
For
a spouse who is age 80 or younger and continues the contract, we reset the MAV to the contract value on the date of the continuation after any rider charges have been deducted and after any increase to the contract value due to the death benefit that would otherwise have been paid. If your spouse is age 81 or older when the contract is continued, the
MAV Death Benefit will terminate and the Standard Death Benefit will apply.
After a covered life change other than for a spouse who continues the contract, if all owners are age 80 or younger, we
reset the MAV on the valuation date we receive your request for the ownership change to the lesser of these two values:
(a)
the contract value
after any rider charges have been deducted, or
(b)
the MAV on that
date, but prior to the reset.
If any owner is age 81 or older at the time of the covered life change, the MAV Death Benefit will terminate and the
Standard Death Benefit will apply.
You cannot elect the optional MAV Death Benefit if you have elected the Contract Value Death Benefit.
For an example, please see Appendix B.
Benefit Protector Death Benefit
The Benefit Protector is intended to provide an additional death benefit to your beneficiary if there are earnings in the
annuity. This will help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see “Charges”). The Benefit Protector provides reduced benefits if you are age 70 or older at the rider effective date. The Benefit Protector does not provide any
additional benefit before the first rider anniversary.
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 39
If you are age 75 or
younger at contract issue, you may choose to add the Benefit Protector to your contract. You cannot elect the optional Benefit Protector Death Benefit if you have elected the
Contract Value Death Benefit or the Enhanced Legacy Benefit.
Qualified annuities have minimum distribution rules that govern the timing and amount of distributions from the annuity contract (see “Taxes — Qualified Annuities — Required Minimum Distributions”). Since the benefit paid by the rider is determined by the amount of earnings at death, the amount of the benefit paid may be reduced as a result of taking any
surrenders including RMDs. Be sure to discuss with your investment professional and tax advisor whether or
not the Benefit Protector is appropriate for your situation.
The Benefit Protector provides that if you die after the first rider anniversary, but before the annuitization start date, and while this contract is in force, we will pay the beneficiary:
•
the applicable death benefit, plus:
•
40% of your
earnings at death if you were under age 70 on the rider effective date; or
•
25% of your earnings at death if you were age 70 or older on the rider effective date.
If there has been a covered life change, remaining purchase payments is set as the
contract value on the date of the most recent covered life change. Thereafter, remaining purchase payments is increased by the amount of each additional purchase payment and adjusted for each partial surrender.
Earnings at death: Earnings at death is equal to the death benefit that is otherwise payable (without
this rider), less remaining purchase payments. We set maximum earnings at death of 250% of purchase payments not previously withdrawn that are one or more years old. Earnings at death cannot be less than zero.
Terminating the Benefit Protector
•
You may terminate the rider within 30 days after the first rider anniversary.
•
You may terminate the rider within 30 days after any rider anniversary beginning with the
seventh rider anniversary.
•
The rider will terminate when you make a full surrender from the contract or on the annuitization start date.
•
Your spouse may terminate the rider within 30 days following the effective date of the
spousal continuation if your spouse is age 75 or younger.
•
You may terminate the rider within 30 days following the effective date of an ownership
change if you are age 75 or younger.
•
The rider will terminate for a spousal continuation or ownership change if the spouse or any
owner is age 76 or older at the time of the change.
•
The rider will terminate after the death benefit is payable, unless the spouse continues the
contract under spousal continuation provision.
•
The rider will terminate when beneficiary elects an alternative payment plan which is an
inherited IRA.
If your spouse is the sole beneficiary and you die before the annuitization start date, your spouse may
keep the contract as owner. Your spouse will be subject to all the limitations and restrictions of the rider just as if they were purchasing a new contract and the age of the spouse at the time of the change will be used to determine the earnings at
death percentage going forward. If your spouse does not qualify for the rider on the basis of age we will terminate the rider and the Standard Death Benefit will apply. If they do qualify for the rider on the basis of age we will set the contract value equal to the death benefit that would otherwise have been paid and we will substitute this new contract value on
the date of death for “remaining purchase payments” used in calculating earnings at death.
After a covered life change other than a spouse that continues the contract, all
owners will be subject to all of the limitations and restrictions of the rider just as if they were purchasing a new contract; and the age of all owners at the time of the change will be used to determine the earnings at death percentage going forward. If any owner does not
qualify for the rider on the basis of age, we will terminate the rider and the Standard Death
Benefit will apply. If they do qualify for the rider on the basis of age, we will substitute the contract
value on the date of the ownership change for remaining purchase payments used in calculating earnings at death.
For an example, please see Appendix B.
The Enhanced Legacy Benefit is
an optional death benefit that you can add to your contract for an additional charge. The Enhanced Legacy Benefit may not be purchased with MAV or Benefit Protector Death Benefit riders. This benefit is intended to provide additional guarantees that may increase the death benefit provided in the
contract.
If you are age 75 or younger at contract issue, you may
choose to add this rider to your contract. The rider will terminate upon assignment or a change in ownership of the contract unless the new assignee or owner meets the
qualifications specified in the Assignment and Change of Ownership section below (does not apply to contracts issued in California).
40 [RiverSource PortfolioEdge Advisory Variable
Annuity] — Prospectus
The Enhanced Legacy Benefit provides that if you die while the contract is in force and before the
annuitization start date, the death benefit will be the greatest of these values:
1.
contract value after any rider charges have been deducted; or
3.
the Accumulation Death Benefit (ADB) value; or
The Accumulation Death Benefit (ADB) is a component of the death benefit that is based on purchase payments increased by 5% on each anniversary through age 80 (adjusted for partial surrenders).
For contracts issued in California, the following applies:
•
The benefits provided under this rider are only payable at the annuitant’s death and
terms “you” or “your” refer to annuitant.
•
If the owner is a natural person, the owner and the annuitant must be the same at
issue.
The key terms and provisions of the Enhanced Legacy Benefit are:
Covered Life Change: is either the continuation of the contract by a spouse under the spouse's option
to continue contract provision or, in all states except California, an ownership change where an owner after the ownership change was not an owner prior to the change.
Adjustments for Partial Surrenders: Adjustments for partial surrenders are calculated for the ROPP
value, ADB value and MAV separately for each partial surrender using the following
formula:
| |
|
the amount the contract value is reduced by the partial surrender |
| |
|
the applicable ROPP value, ADB value or MAV on the date of (but prior to) the partial surrender |
| |
|
the contract value on the date of (but prior to) the partial surrender. |
ROPP Value, ADB Value and MAV: are the total purchase payments on the contract issue date. Additional purchase payments will be added to the ROPP
value, ADB value and MAV. Adjustments for partial surrenders (as calculated above) will be subtracted from the ROPP value, ADB value and MAV. The ROPP value, ADB value and MAV
cannot be withdrawn in a lump sum.
On each contract anniversary prior to your date of death the ADB value and MAV will be adjusted as follows:
1.
On the first contract anniversary, we increase the ADB value by 5%, multiplied by the ADB
value as of 60 days after the contract date.
2.
On each contract anniversary after the first and prior to you reaching age 81, we increase
the ADB value by 5%, multiplied by the prior contract anniversary’s ADB value.
3.
On each contract anniversary prior to you reaching age 86, the MAV will be increased to the
contract value (after rider charges are deducted) if greater.
For a spouse who is age 75 or younger and continues the contract, the Enhanced Legacy Benefit will continue and the ROPP value, ADB value and MAV are reset to the contract value on the date of continuation after any rider charges have
been deducted and after any increase to the contract value due to the death benefit that would otherwise have been paid. If your spouse is age 76 or older when the contract is continued, the Enhanced Legacy Benefit
will terminate and the Standard Death Benefit will apply.
After a covered life change other than for a spouse who
continues the contract, if the owner is age 75 or younger, the Enhanced Legacy Benefit will continue and the ROPP value, ADB value and MAV are reset on the valuation date we receive your written
request for the covered life change to the lesser of the contract value on that date after any rider charges have been deducted, and the applicable ROPP value, ADB value and MAV
on that date (but prior to the reset). If the owner is age 76 or older at the time of the covered life change, the Enhanced Legacy Benefit will terminate and the Standard Death Benefit will apply.
You should consider whether the Enhanced Legacy Benefit is appropriate for you because:
•
Investment Allocation Restrictions: This rider requires 100% allocation of purchase payments and your contract value to approved investment options, which
are currently Portfolio Stabilizer funds and certain Portfolio Navigator funds. This means that you will not be able to allocate contract value to all of the subaccounts that are available under the contract to contract owners who do not elect the rider. (See “Appendix A: Funds Available Under the Enhanced Legacy Benefit”). You may allocate purchase payments to the Special DCA fixed account, when available, and we will make monthly transfers into the investment option you have chosen. We reserve the right to limit the number
of investment option changes per contract year. We also reserve the right to limit elective investment option
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 41
changes if
required to comply with the written instructions of a fund (see “Making the Most of Your Contract – Transferring Among Accounts – Market Timing”). We
reserve the right to add, remove or substitute approved investment options at any time and in our sole discretion. Any substitution of funds may be subject to the SEC or state insurance departments approval. (See “Substitution of Investments”).
•
Limitation on Purchase payments: We reserve the right to limit the cumulative amount of purchase
payments, subject to state restrictions. This may limit your ability to increase the contract value and death benefit. For current purchase payment restrictions, please see “Buying Your Contract — Purchase Payments”.
Assignment and Change of Ownership
Joint ownership and joint annuitants are not allowed while this rider is in force. In
all states, except California, this rider will continue and the benefit amount may be reset if there is an assignment or a change of ownership and the owner or assignee is age 75 or younger. An assignment or change of ownership may also be made to a non-natural owner (e.g.
an individual ownership changed to an irrevocable trust) or to a revocable trust, with either holding for the sole benefit of the prior owner. Assignments and ownership changes other than these will terminate the rider.
For contracts issued in California, the benefits provided under this rider are only
payable at the annuitant’s death. You may not change the annuitant while this rider is in force, unless you are the annuitant and your spouse becomes the owner and annuitant under the spousal continuation provision.
The rider can only be terminated under the following circumstances:
1.
After the death benefit is payable, unless the spouse continues the contract as described in the spouse’s option to
continue contract provision, the rider will terminate.
2.
For contracts issued in California, after the death benefit is payable, if you are not the
annuitant, the rider will terminate.
3.
Certain assignment and ownership changes as described in the Assignment and Change of
Ownership provision will terminate the rider (does not apply to contracts issued in California).
4.
On the annuitization start date the rider will terminate.
5.
In relation to
certain increases to the annual rider fee as described in the Enhanced Legacy Benefit
Charge provision, your written request will terminate the rider.
6.
Reduction of the contract value to zero will terminate the rider.
7.
Termination of the
contract for any reason will terminate the rider.
Upon termination of this rider, any additional death benefit provided by the rider will not be payable upon your death.
Upon termination, this rider may not be reinstated.
For an example, please see Appendix
B.
The Annuity Payout Period
As owner of the contract, you have the right to decide how and to whom annuity payouts will be made starting on the
annuitization start date. You select one of the annuity payout plans outlined below, or we may mutually agree on other payout arrangements. Currently, we make annuity payments on a monthly, quarterly, semi-annually and annual
basis. Assuming the initial payment is on the same date, more frequent payments will generally result in higher total payments over the year. As discussed below, certain annuity payout options have a “guaranteed period,” during which payments are guaranteed to continue. Longer guaranteed periods will generally result in lower annuity payment
amounts.
Surrender charges may be applied when electing to exercise liquidity features we may
make available under certain fixed annuity payout options.
You also decide whether we will make annuity payouts on a fixed or variable basis, or a combination of fixed and variable. If you do not make an election, annuity payouts will be a combination of fixed and variable based on the
proportion of your contract value allocated to the fixed account and variable account at the time payouts begin. The amount available to purchase payouts under the plan you select is the contract value on your annuitization start date
after any applicable charges are deducted (less any applicable premium tax). Additionally, we currently allow you to use part of the amount available to purchase
payouts, leaving any remaining contract value to accumulate on a tax-deferred basis. Special rules apply for partial annuitization of your annuity contract, see “Taxes
– Nonqualified Annuities – Annuity Payouts” and “Taxes – Qualified Annuities – Annuity Payouts.”
If you select a variable annuity payout, we reserve the right to limit the number of
subaccounts in which you may invest. The Special DCA fixed account is not available during this payout period.
42 [RiverSource
PortfolioEdge Advisory Variable Annuity] — Prospectus
Amounts of
fixed and variable payouts depend on:
•
the annuity
payout plan you select;
•
the annuitant’s age and, in most cases, sex;
•
the annuity table in the contract; and
•
the amounts
you allocated to the accounts on the annuitization start date.
In addition, for variable payouts only, amounts depend on the investment performance of the subaccounts you select.
These payouts will vary from month to month based on the performance of the funds. Fixed payouts generally remain the same from month to month unless you have elected an option providing for increasing payments or are exercising any
available liquidity features we may offer and you have elected.
For information with respect to transfers between accounts after annuity payouts begin, see “Making the Most of Your Contract – Transfer Policies.”
The annuity tables in your contract (Table A and Table B) show the amount of the monthly payout for each $1,000 of
contract value according to the annuitant’s age and, when applicable, the annuitant’s sex. (Where required by law, we will use a unisex table of annuity payout rates.)
Table A shows the amount of the first monthly variable payout assuming that the contract value is invested at the
beginning of the annuity payout period and earns a 5% rate of return, which is reinvested and helps to support future payouts. If you ask us at
least 30 days before the annuitization start date, we will substitute an annuity Table based on an assumed 3.5% investment return for the 5% Table A in the contract. The assumed investment return affects both the amount of the first payout and the extent to which subsequent payouts
increase or decrease. For example, annuity payouts will increase if the investment return is above the assumed investment return and payouts will decrease if the return is below the assumed investment return. Using the 5% assumed interest return results in a higher initial payout,
but later payouts will increase more slowly when annuity unit values rise and decrease more rapidly when they decline.
Table B shows the minimum amount of each fixed payout. We declare current payout
rates that we use in determining the actual amount of your fixed annuity payout. The current payout rates will equal or exceed the guaranteed payout rates shown in Table B. We will furnish these rates to you upon request.
We make available variable annuity payouts where payout amounts may vary based on the performance of the variable
account. We may also make fixed annuity payouts available where payments of a fixed amount are made for the period specified in the plan, subject to any surrender we may permit. You may choose any one of these annuity payout plans by
giving us written instructions at least 30 days before the annuitization start date:
•
Plan A: Life annuity – no refund: We make
monthly payouts until the annuitant’s death. Payouts end with the last payout before the annuitant’s death. We will not make any further payouts. This means that if
the annuitant dies after we made only one monthly payout, we will not make any more payouts.
•
Plan B: Life income with guaranteed period: We make monthly payouts for a guaranteed payout period of five, ten, or 15 years that you elect. This election will
determine the length of the payout period in the event if the annuitant dies before the elected period expires. We calculate the guaranteed payout period from the annuitization
start date. If the annuitant outlives the elected guaranteed payout period, we will continue to make payouts until the annuitant’s death.
•
Plan C: Life annuity – installment refund: We make monthly payouts until the annuitant’s death, with our guarantee
that payouts will continue for some period of time. We will make payouts for at least the number of months
determined by dividing the amount applied under this option by the first monthly payout, whether or not the annuitant is living.
•
Plan D: Joint and last survivor life annuity – no refund: We make monthly payouts while both the annuitant and a joint annuitant are living. If either annuitant dies, we will continue to make monthly payouts at the full amount until
the death of the surviving annuitant. Payouts end with the death of the second annuitant.
For Plan A, if the annuitant dies before the initial payment, no payments will be
made. For Plan B, if the annuitant dies before the initial payment, the payments will continue for the guaranteed payout period. For Plan C, if the annuitant dies before the initial payment, the payments will continue for the installment refund period. For Plan D, if both annuitants
die before the initial payment, no payments will be made; however, if one annuitant dies before the initial payment, the payments will continue until the death of the surviving annuitant.
In addition to the annuity payout plans described above, we may offer additional payout plans. These plans may include
cash refund features providing a guarantee of receiving at least a return of the annuitization amount (less any annuity payments made and any premium tax paid) in the event of the annuitant’s death, term certain installment plans with
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 43
varying durations, and
liquidity features allowing access under certain circumstances to a surrender of the underlying value of remaining payments. Terms and conditions of annuity payout plans will be
disclosed at the time of election, including any associated fees or charges. It is important to remember that the election and use of liquidity features may either reduce the amount of future payouts you would otherwise receive or result in payouts ceasing.
Utilizing a liquidity feature to surrender the underlying value of remaining payments may result in the assessment of a surrender charge (See “Charges and Adjustments – Transaction Expenses – Surrender Charge”) or a 10% IRS penalty tax. (See “Taxes.”)
The annuitant's age at the time annuity payments commence will affect the amount of each payment for annuity payment
plans involving lifetime income. The amount of each annuity payment to older annuitants will be greater than for younger annuitants because payments to older annuitants are
expected to be fewer in number. For annuity payment plans that do not involve lifetime income, the length of the guaranteed period will affect the amount of each payment. With a shorter guaranteed period, the amount of each annuity payment will be greater. Payments that occur more
frequently will be smaller than those occurring less frequently.
Annuity payout plan requirements for qualified annuities: If your
contract is a qualified annuity, you have the responsibility for electing a payout plan under your contract that complies with applicable law. Your contract describes your payout plan options. The options will meet certain IRS regulations governing RMDs if the payout plan meets the
incidental distribution benefit requirements, if any, and the payouts are made:
•
in equal or substantially equal payments over a period not longer than your life expectancy
or over the joint life expectancy of you and your designated beneficiary; or
•
over a period certain not longer than your life expectancy or over the life expectancy of you
and your designated beneficiary.
You must select a payout plan as of the annuitization start date set forth in your
contract.
If we do not receive
instructions: You must give us written instructions for the annuity payouts at least 30 days before the
annuitization start date. If you do not, we will make payouts under Plan B, with 120 monthly payouts guaranteed, unless the Code requires otherwise.
If monthly payouts would be less than $20: We will calculate the amount of monthly payouts at the time amounts are applied to a payout plan. If the calculations
show that monthly payouts would be less than $20, we have the right to pay the amount that would otherwise have been applied to a plan to the owner in a lump sum or to change the
frequency of the payouts.
Death after annuity payouts begin: If you die after annuity payouts begin, we will pay any amount
payable to the beneficiary as provided in the annuity payout plan in effect. Payments to beneficiaries are subject to adjustment to comply with the IRS rules and regulations.
Under current law, your contract has a tax-deferral feature. Generally, this means you do not pay income tax until there is a taxable distribution (or deemed distribution) from the contract. We will send a tax information reporting form for any year in which we made a taxable or reportable distribution according to our records.
Generally, only the increase in the value of a non-qualified annuity contract over the investment in the contract is
taxable. Certain exceptions apply. Federal tax law requires that all nonqualified deferred annuity contracts issued by the same company (and possibly its affiliates) to the same owner during a calendar year be taxed as a single, unified
contract when distributions are taken from any one of those contracts.
Annuity payouts: Generally, unlike surrenders described below, the
income taxation of annuity payouts is subject to exclusion ratios (for fixed annuity payouts) or annual excludable amounts (for variable annuity payouts). In other words, in most cases, a portion of each payout will be ordinary income and subject to tax, and a portion of each payout will be
considered a return of part of your investment in the contract and will not be taxed. All amounts you receive after your investment in the contract is fully recovered will be subject to tax. Under Annuity Payout Plan A: Life annuity — no
refund, where the annuitant dies before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the owner for the last taxable year. Under
all other annuity payout plans, where the annuity payouts end before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may
be available as a federal income tax deduction to the taxpayer for the tax year in which the payouts end. (See “The Annuity Payout Period — Annuity Payout
Plans.”)
44 [RiverSource PortfolioEdge Advisory Variable
Annuity] — Prospectus
Federal tax law permits
taxpayers to annuitize a portion of their nonqualified annuity while leaving the remaining balance to continue to grow tax-deferred. Under the partial annuitization rules, the
portion annuitized must be received as an annuity for a period of 10 years or more, or for the lives of one or more individuals. If this requirement is met, the annuitized portion and the tax-deferred balance will generally be treated as two separate contracts for income tax
purposes only. If a contract is partially annuitized, the investment in the contract is allocated between the deferred and the annuitized portions on a pro rata basis.
Surrenders: Generally, if you surrender all or part of your nonqualified annuity before the annuitization start date, your surrender will
be taxed to the extent that the contract value immediately before the surrender exceeds the investment in the contract. Different rules may apply if you exchange another contract into this contract.
You also may have to pay a 10% IRS penalty for surrenders of taxable income you make before reaching age 59½ unless certain exceptions apply.
Withholding: If you receive taxable income as a result of an annuity payout or surrender, we may deduct federal, and in some cases state withholding against the payment. Any withholding represents a prepayment
of your income tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, you have a valid U.S. address and payments are delivered
inside the United States, you may be able to elect not to have federal income tax withholding occur.
If the payment is part of an annuity payout plan, we generally compute the amount of federal income tax withholding
using payroll tables. You may complete our Form W-4P to use in calculating the withholding if you want withholding other than the default (single filing status with no adjustments). If the distribution is any other type of payment (such as
partial or full surrender) we compute federal income tax withholding using 10% of the taxable portion unless you elect a different percentage via our Form W-4R or another acceptable method.
The federal income tax withholding requirements differ if we deliver payment outside the United States or you are a
non-resident alien.
Some states also may impose income tax withholding requirements similar to the federal withholding described above or
may allow you to elect withholding. If this should be the case, we may deduct state income tax withholding from the payment.
Federal and state tax withholding rules are subject to change. Annuity payouts and surrenders are subject to the tax
withholding rules in effect at the time that they are made, which may differ from the rules described above.
Death benefits to beneficiaries: The death benefit under a nonqualified contract is not exempt from estate (federal or state) taxes. In addition, for
income tax purposes, any amount your beneficiary receives that exceeds the remaining investment in the contract is taxable as ordinary income to the beneficiary in the year he or
she receives the payments. (See “Benefits in Case of Death — If You Die Before the
Annuitization Start Date”).
Net Investment Income Tax: Certain investment income
of high-income individuals (as well as estates and trusts) is subject to a 3.8% net investment income tax (as an addition to income taxes). For individuals, the 3.8% tax applies
to the lesser of
(1) the amount by which the taxpayer’s modified adjusted gross income exceeds $200,000 ($250,000 for married filing jointly and surviving spouses; $125,000 for married
filing separately) or (2) the taxpayer’s “net investment income.” Net investment income includes taxable income from nonqualified annuities. Annuity holders are
advised to consult their tax advisor regarding the possible implications of this additional tax.
Annuities owned by corporations, partnerships or irrevocable
trusts: For nonqualified annuities, any annual increase in the value of annuities held by such entities
(nonnatural persons) generally will be treated as ordinary income received during that year. However, if the trust was set up for the benefit of a natural person(s) only, the
income may generally remain tax-deferred until surrendered or paid out.
Penalties: If you receive amounts from your nonqualified annuity
before reaching age 59½, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty will not apply to any amount received:
•
because of
your death or in the event of nonnatural ownership, the death of the annuitant;
•
because you become disabled (as defined in the Code);
•
if the distribution is part of a series of substantially equal periodic payments, made at
least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary);
•
if it is
allocable to an investment before Aug. 14, 1982; or
•
if annuity payouts are made under immediate annuities as defined by the Code.
Transfer of ownership: Generally, if you transfer ownership of a nonqualified annuity without receiving adequate consideration, the transfer
may be taxed as a surrender for federal income tax purposes. If the transfer is a currently taxable event
for income tax purposes, the original owner will be taxed on the amount of deferred earnings at the time
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 45
of the transfer and also
may be subject to the 10% IRS penalty discussed earlier. In this case, the new owner’s investment in the contract will be equal to the investment in the contract at the
time of the transfer plus any earnings included in the original owner’s taxable income as a result of the transfer. In general, this rule does not apply to transfers between spouses or former spouses. Similar rules apply if you transfer ownership for full consideration.
Please consult your tax advisor for further details.
1035 Exchanges of nonqualified annuities: Section 1035 of the Code permits nontaxable exchanges of certain insurance policies, endowment contracts, annuity contracts and qualified long-term care insurance products, while
providing for continued tax deferral of earnings. In addition, Section 1035 permits the carryover of the investment in the contract from the old policy or contract to the new policy or contract. In a 1035 exchange one policy or contract is
exchanged for another policy or contract. The following can qualify as nontaxable exchanges: (1) the exchange of a life insurance policy for another life insurance policy or for an endowment, annuity or qualified long-term care insurance
contract, (2) the exchange of an endowment contract for an annuity or qualified long-term care insurance contract, or for an endowment contract under which payments will begin no later than payments would have begun under the contract
exchanged, (3) the exchange of an annuity contract for another annuity contract or for a qualified long-term care insurance contract, and (4) the exchange of a qualified long-term care insurance contract for a qualified long-term care
insurance contract. However, if the life insurance policy has an outstanding loan, there may be tax consequences. Additionally, other tax rules apply. Depending on the issue date of your original policy or contract, there may be tax or
other benefits that are given up to gain the benefits of the new policy or contract. Consider whether the features and benefits of the new policy or contract outweigh any tax or other benefits of the old contract.
For a partial exchange of an annuity contract for another annuity contract, the 1035 exchange is generally tax-free. The investment in the original contract and the earnings on the contract will be allocated proportionately between the
original and new contracts. However, per IRS Revenue Procedure 2011-38, if surrenders are taken from either contract within the 180-day period following a partial 1035 exchange, the IRS will apply general tax principles to determine the
appropriate tax treatment of the exchange and subsequent surrender. As a result, there may be unexpected tax
consequences. You should consult your tax advisor before taking any surrender from either contract during the 180-day period following a partial exchange.
Assignment: If you assign or pledge your contract as collateral for a loan, earnings on purchase
payments you made will be taxed as a deemed distribution and also may be subject to the 10% penalty as
discussed above.
Adverse tax consequences may result if you do not ensure that contributions, distributions and other transactions under
the contract comply with the law. Qualified annuities have minimum distribution rules that govern the timing and amount of distributions. You should refer to your retirement plan’s Summary Plan Description, your IRA disclosure statement, or consult a tax advisor for additional information about the distribution rules applicable to your situation.
When you use your contract to fund a retirement plan or IRA that is already
tax-deferred under the Code, the contract will not provide any necessary or additional tax deferral. If your contract is used to fund an employer sponsored plan, your right to benefits may be subject to the terms and conditions of the plan regardless of the terms of the contract.
Annuity payouts: Under a qualified annuity, except a Roth IRA, the entire payout generally is includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non-deductible contributions; or (2)
you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax
dollars; or (4) the contract is used to fund a retirement plan and you direct such payout to be directly rolled over to another eligible retirement plan such as an IRA. We may
permit partial annuitizations of qualified annuity contracts. If we accept partial annuitizations, please remember that your contract will still need to comply with other requirements such as required minimum distributions and the payment of taxes. Prior to
considering a partial annuitization on a qualified contract, you should discuss your decision and any implications with your tax adviser. Because we cannot accurately track certain after-tax funding sources, we will generally report any
payments on partial annuitizations as ordinary income except in the case of a qualified distribution from a Roth IRA.
Annuity payouts from Roth IRAs: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age
59½ and meet the five year holding period.
Surrenders: Under a qualified annuity, except a Roth IRA, the entire surrender will generally be includable as ordinary income and is subject to tax unless: (1) the contract is
an IRA to which you made non-deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement
plan and you or your employer have contributed after-tax dollars; or (4) the contract is used to fund a retirement plan and you direct such surrender to be directly rolled over to another eligible retirement plan such as an IRA.
Surrenders from Roth IRAs: In general, the entire payout from a Roth
IRA can be free from income and penalty taxes if you have attained age 59½ and meet the five year holding period or another qualifying event such as death or
disability.
46 [RiverSource PortfolioEdge Advisory Variable
Annuity] — Prospectus
Required
Minimum Distributions: Retirement plans (except for Roth IRAs) are subject to required surrenders called
required minimum distributions (“RMDs”) beginning at age 73. RMDs are based on the fair market value of your contract at year-end divided by the life expectancy factor. Certain death benefits and optional riders may be considered
in determining the fair market value of your contract for RMD purposes. This may cause your RMD to be higher. You should consult your tax advisor prior to making a purchase for an explanation of the potential tax implications to you.
Inherited IRAs (including inherited Roth IRAs) are subject to special required minimum distribution rules.
Withholding for IRAs, Roth IRAs, SEPs and SIMPLE IRAs: If you receive taxable income as a result of an annuity payout or a surrender, we may deduct withholding against the payment. Any withholding represents a prepayment of your tax
due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, you can elect not to have any withholding occur.
If the payment is part of an annuity payout plan, we generally compute the amount of
federal income tax withholding using payroll tables. You may complete our Form W-4P to use in calculating the withholding if you want withholding other than the default (single filing status with no adjustments). If the distribution is any other type of payment (such as
partial or full surrender) we compute federal income tax withholding using 10% of the taxable portion unless you elect a different percentage via our Form W-4R or another acceptable method.
The federal income tax withholding requirements differ if we deliver payment outside the United States or you are a
non-resident alien.
Some states also may impose income tax withholding requirements similar to the federal withholding described above. If
this should be the case, we may deduct state income tax withholding from the payment.
Withholding for all other qualified annuities where RiverSource or Ameriprise Trust Company is responsible for tax reporting: If you receive directly all or part of the contract value from a qualified annuity,
mandatory 20% federal income tax withholding (and possibly state income tax withholding) generally will be imposed at the time the payout is made from the plan. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts
on your annual income tax return. This mandatory withholding will not be imposed if instead of receiving the distribution check, you elect to have the distribution rolled over directly to an IRA or another eligible plan. Payments made to a
surviving spouse instead of being directly rolled over to an IRA are also subject to mandatory 20% income tax
withholding.
In the below situations, the distribution is subject to optional withholding instead of the mandatory 20% withholding. We
will withhold 10% of the distribution amount unless you elect otherwise.
•
the payout is one in a series of substantially equal periodic payouts, made at least annually, over your life or life
expectancy (or the joint lives or life expectancies of you and your designated beneficiary) or over a specified period of 10 years or more;
•
the payout is a RMD as defined under the Code;
•
the payout is made on account of an eligible hardship; or
•
the payout is
a corrective distribution.
State withholding also may be imposed on taxable distributions.
Penalties: If you receive amounts from your qualified contract before reaching age 59½, you may
have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty generally will not apply to any amount received:
•
because you
become disabled (as defined in the Code);
•
if the distribution is part of a series of substantially equal periodic payments made at least annually, over your life or
life expectancy (or joint lives or life expectancies of you and your beneficiary);
•
if the distribution is made following severance from employment during or after the calendar
year in which you attain age 55 (TSAs and annuities funding 401(a) plans only);
•
to pay certain medical or education expenses (IRAs only);
•
if the distribution is made from an inherited IRA; or
•
any other instances, as allowed by the IRS.
Death
benefits to beneficiaries: The entire death benefit generally is taxable as ordinary income to the beneficiary in the year he/she receives the payments from the qualified annuity. If you made non-deductible contributions to a
traditional IRA, the portion of any distribution from the contract that represents after-tax contributions is not taxable as ordinary income to your beneficiary. Under current IRS requirements, you are responsible for keeping all records
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 47
tracking your
non-deductible contributions to an IRA. Death benefits under a Roth IRA generally are not taxable as ordinary income to the beneficiary if certain distribution requirements are
met. (See “Benefits in Case of Death — If You Die Before the Annuitization Start Date”).
Change of retirement plan type: IRS regulations allow for rollovers of certain retirement plan
distributions. In some circumstances, you may be able to have an intra-contract rollover, keeping the same features and conditions. If the annuity contract you have does not support an intra-contract rollover, you are able to request an IRS approved rollover to
another annuity contract or other investment product that you choose. If you choose another annuity contract or investment product, you will be subject to new rules, including a new surrender charge schedule for an annuity contract,
or other product rules as applicable.
Assignment: You may not assign or pledge your qualified contract as collateral for a loan.
Important: Our discussion of federal tax laws is based upon our understanding of current interpretations of these laws. Federal
tax laws or current interpretations of them may change. For this reason and because tax consequences are complex and highly individual and cannot always be anticipated, you
should consult a tax advisor if you have any questions about taxation of your contract.
RiverSource Life’s tax status: We are taxed as a life insurance company under the Code. For federal income tax purposes, the subaccounts are
considered a part of our company, although their operations are treated separately in accounting and financial statements. Investment income is reinvested in the fund in which
each subaccount invests and becomes part of that subaccount’s value. This investment income, including realized capital gains, is not subject to any withholding for federal or state income taxes. We reserve the right to make such a charge in the future if there is a
change in the tax treatment of variable annuities or in our tax status as we then understand it.
The company includes in its taxable income the net investment income derived from the
investment of assets held in its subaccounts because the company is considered the owner of these assets under federal income tax law. The company may claim certain tax benefits associated with this investment income. These benefits, which may include foreign tax
credits and the corporate dividend received deduction, are not passed on to you since the company is the owner of the assets under federal tax law and is taxed on the investment income generated by the assets.
Tax qualification: We intend that the contract qualify as an annuity
for federal income tax purposes. To that end, the provisions of the contract are to be interpreted to ensure or maintain such tax qualification, in spite of any other provisions of the contract. We reserve the right to amend the contract to reflect any clarifications that may be needed or
are appropriate to maintain such qualification or to conform the contract to any applicable changes in the tax qualification requirements. We will send you a copy of any amendments.
Spousal status: When it comes to your marital status and the identification and naming of any spouse as
a beneficiary or party to your contract, we will rely on the representations you make to us. Based on this reliance, we will issue and administer your contract in accordance with these representations. If you represent that you are married and your
representation is incorrect or your marriage is deemed invalid for federal or state law purposes, then the benefits and rights under your contract may be different.
If you have any questions as to the status of your relationship as a marriage, then you should consult an appropriate tax
or legal advisor.
As a contract owner with investments in the subaccounts, you may vote on important fund policies until annuity payouts
begin. Once they begin, the person receiving them has voting rights. We will vote fund shares according to the instructions of the person with voting rights.
Before annuity payouts begin, the number of votes you have is determined by applying your percentage interest in each
subaccount to the total number of votes allowed to the subaccount.
After annuity payouts begin, the number of votes you have is equal to:
•
the reserve held in each subaccount for your contract; divided by
•
the net asset
value of one share of the applicable fund.
As we make annuity payouts, the reserve for the contract decreases; therefore, the number of votes also will decrease.
We calculate votes separately for each subaccount. We will send notice of
shareholders’ meetings, proxy materials and a statement of the number of votes to which the voter is entitled. We are the legal owner of all fund shares and therefore hold all voting rights. However, to the extent required by law, we will vote the shares of each fund according to instructions we receive from contract owners. We will vote shares for which we have not received instructions and
48 [RiverSource PortfolioEdge Advisory Variable
Annuity] — Prospectus
shares that we or our
affiliates own in our own names in the same proportion as the votes for which we received instructions. As a result of this proportional voting, in cases when a small number of
contract owners vote, their votes will have a greater impact and may even control the outcome.
To the extent that voting rights created under applicable federal securities laws are revised or alter the voting rights described herein, we reserve the right to proceed in accordance with those laws and regulatory guidance.
Substitution of Investments
We may substitute the Funds in which the subaccounts invest if:
•
laws or regulations change;
•
the existing funds become unavailable; or
•
in our judgment, the funds no longer are suitable (or no longer the most suitable) for the
Subaccounts.
If any of these situations occur, we have the right to substitute a Fund currently listed in this prospectus (existing fund) for another Fund (new Fund), provided we obtain any required SEC and state insurance law approval. The new Fund may have
higher fees and/or operating expenses than the existing Fund. Also, the new Fund may have investment objectives and policies and/or investment advisers which differ from the
existing Fund.
•
combine any two or more Subaccounts;
•
transfer
assets to and from the Subaccounts or the Variable Account; and
•
eliminate or close any Subaccounts.
We will notify you of any substitution or
change and obtain your approval if required.
In certain limited circumstances permitted by applicable law, we may amend the
contract and take whatever action is necessary and appropriate without your consent or approval. We will obtain any required prior approval of the SEC or state insurance department before making any substitution or change.
About the Service Providers
RiverSource Distributors, Inc. (RiverSource Distributors), our affiliate, serves as the principal underwriter and general
distributor of the contract. Its offices are located at 829 Ameriprise Financial Center, Minneapolis, MN 55474. RiverSource Distributors is a wholly-owned subsidiary of Ameriprise
Financial, Inc.
•
Only securities broker-dealers (“selling firms”) registered with the SEC and members of the FINRA may sell the
contract.
•
The contracts are continuously offered to the public through authorized selling firms. We and RiverSource Distributors
have a sales agreement with the selling firm. The sales agreement authorizes the selling firm to offer the contracts to the public.
Payments to Selling Firms
•
RiverSource does not pay commissions to selling firms or financial advisors for selling this Contract to you. Financial
advisors receive compensation in connection with the Contract in the form of investment advisory fees paid by
Contract Owners.
•
We may, in order to promote sales of the contracts, and as permitted by applicable laws and regulations, pay or provide
selling firms with other promotional incentives in cash, credit or other compensation. We generally (but may not) offer these promotional incentives to all selling firms. The
terms of such arrangements differ between selling firms. These promotional incentives may include but are not limited to:
•
sponsorship of
marketing, educational, due diligence and compliance meetings and conferences we or the selling firm may conduct for financial advisors, including subsidy of travel, meal,
lodging, entertainment and other expenses related to these meetings;
•
marketing support related to sales of the contract including for example, the creation of
marketing materials, advertising and newsletters;
•
providing service to contract owners; and
•
funding other
events sponsored by a selling firm that may encourage the selling firm’s financial advisors to sell the contract.
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 49
These promotional
incentives or reimbursements may be calculated as a percentage of the selling firm’s aggregate, net or anticipated sales and/or total assets attributable to sales of the
contract, and/or may be a fixed dollar amount. As noted below this additional compensation may cause the selling firm and its financial advisors to favor the
contracts.
Sources of Payments to Selling
Firms
We pay the compensation described above from our assets.
Our assets may include:
•
revenues we
receive from fees and expenses that you will pay when buying, owning and surrendering the contract (see “Fee Table and Examples”);
•
compensation
we or an affiliate receive from the underlying funds in the form of distribution and services fees (see “The Variable Account and the Funds – The
Funds”);
•
compensation
we or an affiliate receive from a fund’s investment adviser, subadviser, distributor or an affiliate of any of these (see “The Variable Account and the Funds –
The Funds”); and
•
revenues we receive from other contracts and policies we sell that are not securities and other businesses we
conduct.
You do not directly pay the compensation described above as the result of a specific charge or deduction under the contract. However, you may pay part or all of the compensation described above indirectly through:
•
fees and expenses we collect from contract owners; and
•
fees and
expenses charged by the underlying funds in which the subaccounts you select invest, to the extent we or one of our affiliates receive revenue from the funds or an affiliated
person.
As noted above, You will pay an investment advisory fee to Your financial advisor for this Contract.
Potential Conflicts of Interest
Compensation payment arrangements with selling firms can potentially:
•
give selling firms a heightened financial incentive to sell the contract offered in this
prospectus over another investment with lower compensation to the selling firm.
•
cause selling firms to encourage their financial advisors to sell you the contract offered in
this prospectus instead of selling you other alternative investments that may result in lower compensation to the selling firm.
•
cause selling
firms to grant us access to its financial advisors to promote sales of the contract offered in this prospectus, while denying that access to other firms offering similar
contracts or other alternative investments which may pay lower compensation to the selling firm.
Payments to Financial Advisors
•
You will pay an investment advisory fee to the financial advisor for this
Contract.
•
To inform
yourself of any potential conflicts of interest, ask your financial advisor before you buy how the selling firm and its financial advisors are being compensated and the amount of
the compensation that each will receive if you buy the contract.
We issue the contracts. We are a stock life insurance company organized in 1957 under
the laws of the state of Minnesota and are located at 829 Ameriprise Financial Center, Minneapolis, MN 55474. We are a wholly-owned subsidiary of Ameriprise Financial, Inc.
We conduct a conventional life insurance business. We are licensed to do business in 49 states, the District of Columbia
and American Samoa. Our primary products currently include fixed and variable annuity contracts (including registered indexed linked annuity contracts) and life insurance
policies.
We rely on the exemption from the reporting
requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended (the “1934 Act”), provided by Rule 12h-7 under the 1934 Act. We are obligated to pay
all amounts promised to you under the Contract, subject to our financial strength and claims-paying ability.
RiverSource Life (the Company) is involved in the normal course of business in legal
proceedings which include regulatory inquiries, arbitration and litigation, including class actions, concerning matters arising in connection with the conduct of its activities. These include proceedings specific to the Company as well as proceedings generally applicable
to business practices in the industries in which it operates. The Company can also be subject to legal proceedings arising out of its general business activities, such as its investments, contracts, and employment relationships.
Uncertain economic conditions, heightened and sustained volatility in the financial markets and significant financial
50 [RiverSource PortfolioEdge Advisory Variable
Annuity] — Prospectus
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.
As with other insurance companies, the level of regulatory activity and inquiry concerning the Company’s businesses
remains elevated. From time to time, the Company and its affiliates, including Ameriprise Financial Services, LLC (“AFS”) and RiverSource Distributors, Inc. receive requests for information from, and/or are subject to examination or claims by various state, federal and other domestic authorities. The Company and its affiliates typically have numerous
pending matters, which includes information requests, exams or inquiries regarding their business activities and practices and other subjects, including from time to time: sales and distribution of various products, including the
Company’s life insurance and variable annuity products; supervision of associated persons, including AFS financial advisors and RiverSource Distributors Inc.’s wholesalers; administration of insurance and annuity claims; security of client information; and transaction monitoring systems and controls. The Company and its affiliates have cooperated and
will continue to cooperate with the applicable regulators.
These
legal proceedings are subject to uncertainties and, as such, it is inherently difficult to determine whether any loss is probable or even reasonably possible, or to reasonably
estimate the amount of any loss. The Company cannot predict with certainty if, how or when any such proceedings will be initiated or resolved. Matters frequently need to be
more developed before a loss or range of loss can be reasonably estimated for any proceeding. An adverse outcome in one or more proceedings could eventually result in adverse judgments, settlements, fines, penalties or other sanctions,
in addition to further claims, examinations or adverse publicity that could have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity.
The financial statements for RiverSource Variable Account 10, as well as the consolidated financial statements of RiverSource Life, are in the Statement of Additional Information. A current Statement of Additional Information may be obtained, without
charge, by calling us at 1-800-862-7919, or can be found online
at www.ameriprise.com/variableannuities.
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 51
Appendix A: Investment Options Available Under the
Contract
The following is a list of funds available under
the contract. More information about the funds is available in the prospectuses for the funds, which may be amended
from time to time and can be found online at [____]. You can also request this information at no cost by calling [____] or by sending an email request to [____]. If you elect the
Enhanced Legacy Benefit, you may not be able to invest in certain funds. See table below, “Funds Available Under
the Enhanced Legacy Benefit”.
The current expenses and performance information below reflects fee and expenses of the funds, but do not reflect the other fees and expenses that your contract may charge. Expenses would be higher and performance
would be lower if these other charges were included. Each fund’s past performance is not necessarily an indication of future performance.
[TO BE FILED BY AMENDMENT]
The following is a list of Fixed Options currently available under the Contract. We
may change the features of the Fixed Options listed below or terminate existing Fixed Options. We will provide you with written notice before doing so.
| |
|
|
Guaranteed
Minimum
Interest Rate* |
Special DCA Fixed Account |
|
|
|
Special DCA Fixed Account |
|
|
|
* Guaranteed minimum interest rates vary by Issue State. See your
Contract Data Page for your applicable guaranteed minimum interest rate.
52 [RiverSource
PortfolioEdge Advisory Variable Annuity] — Prospectus
Appendix B: Example – Death Benefits
The purpose of this appendix is to illustrate the operation of various death benefits.
In order to demonstrate these contract benefits, an example may show
hypothetical contract values. These contract values do not represent past or future performance. Actual contract values may be more or less than those shown
and will depend on a number of factors, including but not limited to the investment experience of the subaccounts, Special DCA fixed account and the fees and charges that apply to your contract.
The examples of the death benefits in this appendix include partial surrenders to illustrate the effect of partial surrenders on the particular benefit. These examples are intended to show how the death benefits operate, and do not take into account whether a particular death benefit is part of a qualified annuity. Qualified annuities are subject to RMDs at certain ages (see “Taxes – Qualified Annuities – Required Minimum Distributions”) which may require you to take partial surrenders from the contract. If you are considering the addition of certain death benefits to a qualified annuity, you should consult your tax advisor prior to making a purchase for an explanation of the potential tax implication to you.
Example – STANDARD 3-YEAR MAV DEATH BENEFIT
•
You purchase the contract with a payment of $25,000, therefore at contract issue, the ROPP and 3-Year MAV Values are
both set equal to $25,000.
•
On the third contract anniversary, the contract value grows to $28,000 and the 3-Year MAV Value is increased to
$28,000.
•
During the fourth contract year, the contract value falls to $23,000, at which point you take
a $1,500 partial surrender, leaving a contract value at $21,500.
We calculate the 3-Year MAV Death Benefit, as follows: |
|
|
| |
|
|
| |
|
|
| |
ROPP Value prior to the partial surrender: |
|
|
| |
minus the adjusted partial surrender, calculated as: |
|
|
| |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
3-Year MAV Value prior to the partial surrender: |
|
|
| |
minus the adjusted partial surrender, calculated as: |
|
|
| |
|
|
|
|
| |
|
|
|
| |
for a 3-Year MAV Value of: |
|
|
The 3-Year MAV Death Benefit, calculated as the greatest of these three values: |
|
|
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 53
Example – STANDARD ROPP DEATH BENEFIT
•
You purchase the contract with a payment of $20,000, therefore at contract issue, the ROPP Value is set equal to
$20,000.
•
On the first contract anniversary, you make an additional purchase payment of $5,000, and the ROPP Value is increased to
$25,000.
•
During the
second contract year, the contract value falls to $22,000, at which point you take a $1,500 partial surrender.
•
During the third contract year, the contract value grows to $23,000.
We calculate the ROPP Death Benefit, as
follows: |
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ROPP Value prior to the partial surrender: |
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minus the adjusted partial surrender, calculated as: |
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The Standard ROPP Death Benefit, calculated as the greater of these two values: |
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54 [RiverSource PortfolioEdge Advisory Variable
Annuity] — Prospectus
Example – optional MAV Death Benefit
•
You purchase the contract with a payment of $25,000, therefore at contract issue, the ROPP and MAV Values are both set
equal to $25,000.
•
On the first
contract anniversary, the contract value grows to $28,000 and the MAV Value is increased to $28,000.
•
During the second contract year, the contract value falls to $23,000, at which point you take
a $1,500 partial surrender, leaving a contract value at $21,500.
We calculate the MAV Death Benefit as follows: |
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ROPP Value prior to the partial surrender: |
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minus the adjusted partial surrender, calculated as: |
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MAV Value prior to the partial surrender: |
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minus the adjusted partial surrender, calculated as: |
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The MAV Death Benefit, calculated as the greatest of these three values: |
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[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 55
EXAMPLE
— BENEFIT PROTECTOR
•
You purchase the contract with a payment of $100,000 and you are under age 70. You select the
MAV and the Benefit Protector.
•
During the first contract year the contract value grows to $105,000. The death benefit equals
the contract value, or $105,000. You have not reached the first contract anniversary so the Benefit Protector does not provide any additional benefit at this time.
•
On the first contract anniversary the contract value grows to $110,000. The death benefit equals:
MAV death benefit amount (contract value): |
|
plus the Benefit Protector which equals 40% of earnings at death (MAV death benefit amount minus
remaining purchase payments): |
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0.40 × ($110,000 – $100,000) = |
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| |
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•
On the second contract anniversary the contract value falls to $105,000. The death benefit equals:
MAV death benefit amount (maximum anniversary value): |
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plus the Benefit Protector (40% of earnings at death): |
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0.40 × ($110,000 – $100,000) = |
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•
During the third contract year the contract value remains at $105,000 and you request a partial surrender of $50,000. We
calculate remaining purchase payments as $100,000 – $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit
equals:
MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): |
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plus the Benefit Protector (40% of earnings at death): |
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0.40 × ($57,619 – $55,000) = |
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•
On the third contract anniversary the contract value falls by $40,000. The death benefit remains at $58,667. The
reduction in contract value has no effect.
•
On the ninth contract anniversary the contract value grows to a new high of $200,000.
Earnings at death reaches its maximum of 250% of remaining purchase payments that are one or more years old. The death benefit equals:
MAV death benefit amount (contract value): |
|
plus the Benefit Protector (40% of earnings at death) |
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0.40 × 2.50 × ($55,000) = |
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| |
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•
During the tenth contract year you make an additional purchase payment of $50,000 and your contract value grows to
$250,500. The new purchase payment is less than one year old and so it has no effect on the Benefit Protector. The death benefit equals:
MAV death benefit amount (contract value): |
|
plus the Benefit Protector (40% of earnings at death) |
|
0.40 × 2.50 × ($55,000) = |
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•
During the eleventh contract year the contract value remains $250,500 and the “new” purchase payment is now one year old. The value of the Benefit Protector changes. The death benefit equals:
MAV death benefit amount (contract value): |
|
plus the Benefit Protector which equals 40% of earnings at death (the Standard Death
Benefit amount minus remaining purchase payments): |
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0.40 × ($250,500 – $105,000) = |
|
56 [RiverSource PortfolioEdge Advisory Variable
Annuity] — Prospectus
[RiverSource PortfolioEdge Advisory Variable Annuity] — Prospectus 57
EXAMPLE
– ENHANCED LEGACY BENEFIT
•
You purchase the contract with a payment of $25,000; and
•
on the first contract anniversary the total contract value is $25,750; and
•
100 days into
the second contract year the total contract value is $24,300. You take a $1,500 partial surrender, leaving the contract value at $22,800. The partial year fee for the Enhanced
Legacy Benefit on that day would be $64.10 ($24,629.63 x 0.95% x 100 / 365).
The death benefit, which is based on the greatest of four values, is calculated as follows: |
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Contract value death benefit (contract value minus rider fees):$22,800.00 - $64.10 = $22,735.90 |
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Purchase payments minus adjusted partial surrenders: |
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minus adjusted partial surrenders, calculated as: |
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The MAV immediately preceding the date of death: |
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The MAV on the immediately preceding anniversary: |
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plus purchase payments made since that anniversary: |
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minus adjusted partial surrenders, calculated as: |
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The Accumulation Death Benefit value: |
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The ADB value on the first contract anniversary calculated as: 1.05 × $25,000 = |
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plus purchase payments made since that anniversary: |
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minus adjusted partial surrender calculated as: |
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Enhanced Legacy Benefit,
calculated as the greatest of these four values, which is the Accumulation Death Benefit value: |
|
|
58 [RiverSource PortfolioEdge Advisory Variable
Annuity] — Prospectus
Appendix C: State Variations
This prospectus describes all the material features of the Contract. Certain provisions of the Contract may be different from the general description in this prospectus due to variations required by a state. The state in which your Contract is
issued governs whether certain options are available or will vary under Your Contract. Any state variations will be included in Your Contract or endorsements attached to Your Contract. To review a copy of the Contract and any
endorsements, contact the Service Center.
| |
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Variations or Availability |
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This page left blank intentionally
This page left blank intentionally
The Statement of Additional Information (SAI)
includes additional information about the Contract. The SAI, dated the same date as this prospectus, is incorporated by reference into this prospectus. The SAI is available,
without charge, upon request. For a free copy of the SAI, or for more information about the Contract, call us at 1-800-862-7919, visit our website at riversource.com/annuities or write to us at: 70100 Ameriprise Financial Center Minneapolis, MN 55474.
RiverSource Life Insurance Company (RiverSource Life)
70100 Ameriprise Financial Center
Minneapolis, MN 55474
[__________]
Reports and other information about RiverSource Variable Account 10 are available on
the SEC’s website at http://www.sec.gov, and copies of this information may be obtained, upon payment of a duplicating fee, by electronic request at the following email address:
publicinfo@sec.gov.
EDGAR Contract Identifier: [__________]
©
2008-2026 RiverSource Life Insurance Company. All rights reserved.
STATEMENT OF ADDITIONAL INFORMATION
FOR
RIVERSOURCE® PORTFOLIOEDGE ADVISORY VARIABLE ANNUITY
RIVERSOURCE VARIABLE ACCOUNT 10
___________, 20XX
RiverSource
Variable Account 10 is a separate account of RiverSource Life Insurance Company (RiverSource Life). This Statement of Additional Information (SAI) is not a prospectus. It should be read together with the prospectus dated the same date as this SAI,
which may be obtained from your sales representative, or by writing or calling us at the address and telephone number below.
This SAI contains financial
information for all the subaccounts of RiverSource Variable Account 10. Not all subaccounts will apply to your specific contract.
RiverSource Life
Insurance Company
70100 Ameriprise Financial Center
Minneapolis, MN 55474
1-800-862-7919
[_________]
Table of Contents
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| 1 |
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RiverSource Variable Account 10 |
Company
RiverSource Life Insurance Company (the “Company”, “we”, “our” and “us”) is a stock life insurance company
organized in 1957 under the laws of the state of Minnesota, located at 829 Ameriprise Financial Center, Minneapolis, MN 55474. We are a wholly-owned subsidiary of Ameriprise Financial, Inc.
We conduct a conventional life insurance business. We are licensed to do business in 49 states, the District of Columbia and American Samoa. Our primary
products currently include fixed and variable annuity contracts (including indexed linked annuity contracts) and life insurance policies.
Non-Principal Risks of Investing in the Contracts
Fund of Funds Risk. Funds that are “funds
of funds” (or “feeder funds”) invest substantially all of their assets in other funds and will therefore bear a pro-rata share of fees and expenses incurred by both funds. This will reduce
your investment return.
Money Market Fund Sub-Account Delay of Payment Risk. If, pursuant to SEC rules, a
Fund that is a money market fund suspends payment of redemption proceeds in connection with a liquidation of such Fund, we will delay payment of any transfer, partial withdrawal, full surrender, or death benefit from the corresponding Subaccount
until the Fund is liquidated.
Mixed and Shared Funding Risk. Fund shares may be sold to our insurance company affiliates or other unaffiliated
insurance companies to serve as an underlying investment for variable annuity contracts and variable life insurance policies, pursuant to a practice known as mixed and shared funding. As a result, there is a possibility that a material conflict may
arise between the interests of Owners, and other Owners investing in these Funds. If a material conflict arises, we will consider what action may be appropriate, including removing the Fund from the Variable Account or replacing the Fund with
another underlying Fund.
BUSINESS CONTINUITY/DISASTER RECOVERY
Disruptive events, including natural or man-made disasters and public health crises may adversely affect our ability to
conduct business, including if our employees, the employees of intermediaries or service providers are unable to perform their responsibilities as a result of any such event. Such disruptions to our business operations could interfere with
processing of transactions (including the issuance of contracts). Also, disruptions may interfere with our ability to receive, pick up and process mail and messages, impact our ability to calculate values, or cause other operational or system
issues. Furthermore, these disruptions may persist even if our employees, the employees of intermediaries or service providers are able to work remotely. These events may also impact the issuers of securities in which the Funds invest, which may
cause the Funds to lose value. There can be no assurance that RiverSource Life, the Funds, or our service providers will avoid losses affecting your policy due to a disaster or other catastrophe.
Services
Our Service Center
performs certain administrative services on the contracts and policies we issue. The address and telephone number of our Service Center are listed on the first page of the prospectus.
We also have entered into agreements with the following entities to provide the identified services in connection with the contracts and policies we issue.
The entities engaged by RiverSource Life may change over time. We may modify, terminate, or enter into new arrangements with service providers at any time.
Entities that provide a significant amount of services to RiverSource Life are listed in the table below, along with a description of the services provided
and the basis for compensation paid.
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| Name of Service Provider |
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Services Provided |
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Principal Business Address |
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Basis for Compensation Paid |
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| Ameriprise Financial, Inc. (“AFI”)* |
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Business affairs management and administrative support related to new business and servicing of existing contracts and policies |
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901 Third Avenue South Minneapolis, MN 55402 USA |
|
Expense allocation based primarily on policies in force, secondarily on policies issued or cash sales (for acquisition expenses) |
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| Ameriprise India LLP (“Amp India”)* |
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Administrative support related to new business
and servicing of existing contracts and policies |
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Plot No. 14, Sector 18 Udyog Vihar
Gurugram, Haryana – 122 015 India |
|
Expense allocation based on number of service
provider employees dedicated to performing services |
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| Foundever Asia, Inc. (“Foundever Asia”)
(previously known as Sykes Enterprises Incorporated) |
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Administrative support related to new business
and servicing of existing contracts and policies |
|
10th Floor, Glorietta BPO 1 Office Tower Makati
City 1224 Metro Manila Philippines |
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Expense allocation based on number of contacts
made or received from customers |
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| RiverSource Variable Account 10 |
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☐ |
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2 |
The aggregate dollar amount paid to AFI by RiverSource Life for the services provided in 2025 was
$[__________], in 2024 was $[__________] and in 2023 was $[__________].
The aggregate dollar amount paid to Amp India by RiverSource Life for the
services provided in 2025 was $[__________], in 2024 was $[__________] and in 2023 was $[__________].
The aggregate dollar amount paid to Foundever Asia
by RiverSource Life for the services provided in 2025 was $[__________], in 2024 was $[__________] and in 2023 was $[__________].
Calculating Annuity Payouts
THE VARIABLE ACCOUNT
We do the following calculations separately for each of the subaccounts of the variable account. The separate monthly payouts, added together, make up your
total variable annuity payout.
Initial Payout: To compute your first monthly payout, we:
| |
• |
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determine the dollar value of your contract on the valuation date and deduct any applicable premium tax; then
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• |
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apply the result to the annuity table contained in the contract or another table at least as favorable.
|
The annuity table shows the amount of the first monthly payout for each $1,000 of value which depends on factors built into the table,
as described below.
Annuity Units: We then convert the value of your subaccount to annuity units. To compute the number of units credited to you,
we divide the first monthly payout by the annuity unit value (see below) on the valuation date. The number of units in your subaccount is fixed. The value of the units fluctuates with the performance of the underlying fund.
Subsequent Payouts: To compute later payouts, we multiply:
| |
• |
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the annuity unit value on the valuation date by; |
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• |
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the fixed number of annuity units credited to you. |
Annuity Unit Values: We originally set this value at $1 for each subaccount. To calculate later values we multiply the last annuity value by the product
of:
| |
• |
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the net investment factor; and |
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• |
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the neutralizing factor. |
The purpose of the neutralizing factor is to offset the effect of the assumed rate built into the annuity table. With an assumed investment rate of 5%, the
neutralizing factor is 0.999866 for a one day valuation period.
Net Investment Factor: We determine the net investment factor by:
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• |
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adding the fund’s current net asset value per share plus the per share amount of any accrued income or
capital gain dividends to obtain a current adjusted net asset value per share; then |
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• |
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dividing that sum by the previous adjusted net asset value per share; and |
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• |
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subtracting the percentage factor representing the mortality and expense risk fee from the result.
|
Because the net asset value of the fund may fluctuate, the net investment factor may be greater or less than one, and the annuity unit
value may increase or decrease. You bear this investment risk in a subaccount.
THE FIXED ACCOUNT
We guarantee your fixed annuity payout amounts. Once calculated, your payout will remain the same and never change. To calculate your annuity payouts we:
| |
• |
|
take the value of your fixed account at the retirement/settlement date or the date you selected to begin
receiving your annuity payouts; then |
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• |
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using an annuity table, we apply the value according to the annuity payout plan you select.
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The annuity payout table we use will be the one in effect at the time you choose to begin your annuity payouts. The values in the table
will be equal to or greater than the table in your contract.
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| 3 |
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☐ |
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RiverSource Variable Account 10 |
Rating Agencies
We receive ratings from independent rating agencies. These agencies evaluate the creditworthiness and claims-paying ability of insurance companies based on a
number of different factors. The ratings reflect each agency’s estimation of our ability to meet our contractual obligations such as making annuity payouts and paying death benefits and other distributions. As such, the ratings relate to our
fixed account and not to the subaccounts. This information generally does not relate to the management or performance of the subaccounts.
For detailed
information on the agency ratings given to RiverSource Life, see “Investor Relations — Financial Information — Credit Ratings” on our website at ameriprise.com or contact your sales representative. You also may view our
current ratings by visiting the agency websites directly at:
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| A.M. Best |
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www.ambest.com |
| Moody’s |
|
www.moodys.com |
| Standard & Poor’s |
|
www.standardandpoors.com |
A.M. Best — Rates insurance companies for their financial strength.
Moody’s — Rates insurance companies for their financial strength.
Standard & Poor’s — Rates insurance companies for their financial strength.
Principal Underwriter
RiverSource Distributors, Inc. (RiverSource Distributors) serves as principal underwriter for the contracts, which are offered on a continuous basis. Its
offices are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. RiverSource Distributors is registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 as a broker-dealer and is a member of the
Financial Industry Regulatory Authority (FINRA). RiverSource Distributors is not required to sell any specific number or dollar amount of securities, but will use its best efforts to sell the securities offered. The contracts are offered to the
public through certain securities broker-dealers that have entered into sales agreements with RiverSource Life and RiverSource Distributors and whose personnel are legally authorized to sell annuity and life insurance products. RiverSource
Distributors is a wholly-owned subsidiary of Ameriprise Financial, Inc.
The aggregate dollar amount of underwriting commissions paid to RiverSource
Distributors by RiverSource Life for the variable accounts in 2025 was $[__________], in 2024 was $[__________], and in 2023 was $[__________]. RiverSource Distributors retains no underwriting commissions from the sale of the contracts.
Experts
[TO BE FILED BY
AMENDMENT]
Custodian
RiverSource Life is the custodian of the assets of RiverSource Variable Account 10. RiverSource Life holds these assets for safekeeping, maintains records and
accounts relating to the variable account including purchase and redemption transactions, and is responsible for administration of the contracts. RiverSource Life’s principal offices are located at 70100 Ameriprise Financial Center,
Minneapolis, MN 55474.
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| RiverSource Variable Account 10 |
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☐ |
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4 |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
[TO BE FILED BY AMENDMENT]
FINANCIAL STATEMENTS
[TO BE
FILED BY AMENDMENT]
[_____________]
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| 5 |
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☐ |
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RiverSource Variable Account 10 |
PART C –
OTHER INFORMATION
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Amended and Restated Participation Agreement by and between Franklin Templeton Variable Insurance Products Trust,
Franklin/Templeton Distributors, Inc., American
Centurion Life Assurance Company, American Enterprise Life Insurance
Company, IDS Life Insurance Company, IDS Life Insurance Company of New York, Ameriprise Financial Services, Inc.
(formerly American Express Financial Advisors Inc.), dated
August 1, 2005 filed electronically as Exhibit 8.7 to Registrant’s
Post-Effective Amendment No. 39 to Registration Statement No. 333-79311 is incorporated by reference. |
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Amended and Restated Participation Agreement dated September 1, 2006, by and among IDS Life Insurance Company,
Legg Mason Partners Variable Portfolios I, Inc.
(formerly Salomon Brothers Variable Series Fund, Inc.), Legg Mason
Partners Variable Portfolios II, Inc. (formerly Greenwich Street Series Fund, formerly Smith Barney Series Fund, formerly
Smith Barney Shearson Series Fund, formerly Shearson
Series Fund), Legg Mason Partners Variable Portfolios III, Inc.
(formerly Travelers Series Fund Inc., formerly Smith Barney Travelers Series Fund Inc.) and Legg Mason Investor Services,
LLC filed electronically as Exhibit 8.15 to
Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is
incorporated herein by reference. |
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Consent of Independent Registered Public Accounting Firm will be filed by amendment. |
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Inline Interactive Data File – the instance document does not appear in the Interactive Data File because its iXBRL tags are
embedded within the Inline XBRL document filed electronically herewith.
|
Item 28. Directors and Officers of the Depositor The following are the Officers and Directors who are engaged directly or indirectly in activities
relating to the Registrant or the variable annuity contracts offered by the Registrant and the executive officers of the Company:
| |
Principal Business Address*
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Position and Offices With Depositor |
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Chairman of the Board and President
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Senior Vice President – Corporate Tax |
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Director, Senior Vice President and Chief Actuary |
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Director, Vice President - RiverSource Service & Operations |
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Senior Vice President and Treasurer |
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Director, Vice President – National Sales Manager |
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Director, Senior Vice President – Insurance and Annuities Product Development and Management |
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Director, Chief Financial Officer |
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Vice President and Controller |
*
The business address is 70100 Ameriprise Financial Center, Minneapolis, MN
55474.
Item 29. Persons Controlled by or Under Common Control with the Depositor or the Registrant
The following is the list of subsidiaries of Ameriprise Financial,
Inc:
SUBSIDIARIES AND AFFILIATES OF AMERIPRISE FINANCIAL, INC.
Parent Company /Subsidiary Name |
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Ameriprise Financial, Inc.* |
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Ameriprise Advisor Capital, LLC |
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Ameriprise Advisor Financing 2, LLC |
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Ameriprise Asset Management Holdings Singapore (Pte.) Ltd. |
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Threadneedle Portfolio Services Hong Kong Limited |
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Columbia Threadneedle Investments Japan Co., Ltd. |
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Columbia Threadneedle Malaysia Sdn Bhd. |
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Threadneedle Investments Singapore (Pte.) Ltd. |
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Ameriprise Capital Trust I |
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Ameriprise Capital Trust II |
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Ameriprise Capital Trust III |
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Parent Company /Subsidiary Name |
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Ameriprise Capital Trust IV |
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Ameriprise Captive Insurance Company |
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Ameriprise Certificate Company |
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Investors Syndicate Development Corporation |
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Ameriprise Holdings, Inc. |
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Ameriprise Installment Financing, LLC |
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Ameriprise India Partner, LLC |
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American Enterprise Investment Services Inc.2 |
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Ameriprise Financial Services,
LLC2 |
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AMPF Property Corporation |
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Investment Professionals,
Inc.2 |
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Columbia Management Investment Advisers, LLC |
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Advisory Capital Strategies Group Inc. |
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Columbia Wanger Asset Management, LLC |
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Emerging Global Advisors, LLC |
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J. & W. Seligman & Co. Incorporated |
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Columbia Management Investment Distributors, Inc.2 |
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Lionstone BBP Limited Partner, LLC |
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Lionstone CREAD Partners Two, LLC |
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Lionstone CFRE II Real Estate Advisory, LLC |
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Lionstone Raleigh Development Partners GP, LLC |
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Lionstone RDP Co-Investment Fund I GP, LLC |
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RiverSource CDO Seed Investments, LLC |
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Columbia Management Investment Services Corp. |
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Columbia Threadneedle Investments UK International Limited |
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Columbia Threadneedle (Europe) Limited |
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Columbia Threadneedle AM (Holdings) Limited |
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Parent Company /Subsidiary Name |
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Columbia Threadneedle Capital (Group) Limited |
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Columbia Threadneedle Capital (Holdings) Limited |
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Columbia Threadneedle Capital (UK) Limited |
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Columbia Threadneedle Multi-Manager LLP |
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Columbia Threadneedle Group (Holdings) Limited |
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Columbia Threadneedle Group (Management) Limited |
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Columbia Threadneedle Holdings Limited |
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Columbia Threadneedle Management Limited |
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FCEM Holdings (UK) Limited |
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Columbia Threadneedle Netherlands B.V. |
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Columbia Threadneedle Treasury Limited |
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Columbia Threadneedle Fund Management Limited |
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Columbia Threadneedle (Services) Limited |
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Columbia Threadneedle Management (Swiss) GmbH‡ |
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Columbia Threadneedle Investment Business Limited |
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Columbia Threadneedle PE Co-Investment GP LLP |
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Columbia Threadneedle PE Co-Investment FP LP4 |
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Columbia Threadneedle Real Estate Partners LLP5 |
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CT UK Residential Real Estate FCP-RAIF (Associate) |
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Columbia Threadneedle Real Estate Partners S.à.r.l. |
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CT Real Estate Partners GmbH & Co. KG, München |
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CT Real Estate Partners Verwaltungsgesellschaft mbH, München (General Partner) |
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Columbia Threadneedle Real Estate Partners Asset Management Limited |
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Parent Company /Subsidiary Name |
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Columbia Threadneedle REP Property Management Limited |
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Castle Mount Impact Partners GP LLP |
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Castle Mount Impact Partners FP
LP4 |
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The Aurora Fund (Founder Partner)
LP4 |
|
F&C Climate Opportunity Partners (GP) Limited |
|
F&C Climate Opportunity Partners (GP) LP |
|
F&C Climate Opportunity Partners (Founder Partner) LP4 |
|
F&C Equity Partners Holdings Limited |
|
F&C European Capital Partners (GP) LP |
|
F&C European Capital Partners II (GP) Limited |
|
F&C European Capital Partners II (Founder Partner) LP4 |
|
F&C European Capital Partners II (GP) LP |
|
F&C Group ESOP Trustee Limited |
|
FP Asset Management Holdings Limited |
|
Columbia Threadneedle Asset Managers Limited |
|
| |
|
Columbia Threadneedle (EM) Investments Limited |
|
Pyrford International Limited |
|
RiverSource Distributors,
Inc.2 |
|
RiverSource Life Insurance Company |
|
Columbia Cent CLO Advisers, LLC |
|
RiverSource Life Insurance Co. of New York |
|
| |
|
| |
|
RiverSource Tax Advantaged Investments, Inc. |
|
AEXP Affordable Housing Portfolio,
LLC6 |
|
Stone Arch Solutions, LLC |
|
TAM UK International Holdings Limited |
|
Columbia Threadneedle Investments (ME) Limited |
|
| |
|
| |
|
Parent Company /Subsidiary Name |
|
Threadneedle Asset Management Oversight Limited |
|
Threadneedle EMEA Holdings 1, LLC |
|
Threadneedle Holdings Limited |
|
| |
|
Threadneedle Asset Management Holdings Limited** |
|
Columbia Threadneedle Foundation |
|
Columbia Threadneedle Pullman Promote Ltd. |
|
| |
|
Threadneedle Asset Management Limited |
|
Threadneedle Investment Services Limited |
|
Threadneedle Asset Management (Nominees) Limited |
|
Sackville TIPP Property (GP) Limited |
|
Threadneedle Asset Management Finance Limited |
|
| |
|
Threadneedle International Limited |
|
Threadneedle Investments (Channel Islands) Limited |
|
Threadneedle Investments Limited |
|
Threadneedle Management Services Limited |
|
Threadneedle Pension Trustees Limited |
|
Threadneedle Navigator ISA Manager Limited |
|
Threadneedle Pensions Limited |
|
Threadneedle Portfolio Services AG |
|
Threadneedle Portfolio Services Limited |
|
Threadneedle Property Investments Limited |
|
Sackville (CTESIF) 2&3 GP Sàrl |
|
Parent Company /Subsidiary Name |
|
Sackville Property Atlantic (Jersey GP) Limited |
|
Sackville Property Curtis (Jersey GP) Limited |
|
Sackville Property Hayes (Jersey GP) Limited |
|
Sackville UKPEC6 Hayes Nominee 1 Limited |
|
Sackville UKPEC6 Hayes Nominee 2 Limited |
|
Sackville UK Property Select II (GP) Limited |
|
Sackville UK Property Select II (GP) No. 3 Limited |
|
Sackville UK Property Select II Nominee (3) Limited |
|
Sackville UK Property Select III (GP) No. 1 Limited |
|
Sackville UK Property Select III Nominee (1) Limited |
|
Sackville UK Property Select III Nominee (2) Limited |
|
Sackville UK Property Select III (GP) No. 2 Limited |
|
Sackville UK Property Select III Nominee (3) Ltd |
|
Sackville UK Property Select III Nominee (4) Ltd |
|
Sackville UK Property Select III (GP) No. 3 Limited |
|
Sackville UK Property Select III Nominee (5) Ltd |
|
Sackville UK Property Select III Nominee (6) Ltd |
|
Sackville UK Property Select III (GP) S.à r.l. |
|
Sackville UK Property Select IV (GP) S.à.r.l. |
|
Sackville UK Property Select IV (GP) No. 1 Limited |
|
Sackville UK Property Select IV Nominee (1) Limited |
|
Sackville UK Property Select IV Nominee (2) Limited |
|
Sackville UK Property Select IV Nominee (7) Limited |
|
Sackville UK Property Select IV Nominee (8) Limited |
|
Sackville UK Property Select IV (GP) No. 2 Limited |
|
Sackville UK Property Select IV Nominee (3) Limited |
|
Sackville UK Property Select IV Nominee (4) Limited |
|
Sackville UK Property Select IV (GP) No. 3 Limited |
|
Sackville UK Property Select IV Nominee (5) Limited |
|
Sackville UK Property Select IV Nominee (6) Limited |
|
Parent Company /Subsidiary Name |
|
Threadneedle Property Execution 1 Limited |
|
Threadneedle Property Execution 2 Limited |
|
Threadneedle Management Luxembourg S.A. |
|
Unless otherwise indicated all ownership interests are 100%
*
Publicly-traded company (NYSE: AMP)
**
The company has non-voting shares held by third parties
†
Regulated by Luxembourg Authority
‡
FINMA Authorized Representative office of BMO Asset Management Ltd.
1
Owned by: Ameriprise Financial, Inc. 100% profit sharing ratio with capital
contribution of 124,078,760 INR (Indian currency=rupees) & 10 INR owned each by Columbia Management Investment Advisers, LLC & Ameriprise India Partner,
LLC
2
Registered broker-dealer
3
Managed by members of onshore hedge fund feeders
4
Columbia Threadneedle AM (Holdings) Limited owns a percentage of the entity
5
Columbia Threadneedle Treasury Limited holds 1 unit
6
One-third of this entity is owned by American Express Travel Related Services
The amended and restated By-Laws of the depositor provide that the depositor
will indemnify, to the fullest extent now or hereafter provided for or permitted by law, each person involved in, or made or threatened to be made a party to, any
action, suit, claim or proceeding, whether civil or criminal, including any investigative, administrative, legislative, or other proceeding, and including any action by or in the right of the depositor or any other corporation, or any partnership, joint venture, trust, employee benefit plan, or other enterprise (any such entity, other than the depositor, being hereinafter referred to as an “Enterprise”), and including appeals therein (any such action or process being hereinafter referred to as a “Proceeding”), by reason of the fact that such person, such person’s testator or intestate (i) is or was a director or officer of the depositor, or (ii) is or was serving, at the request of the depositor, as a director, officer, or in any other capacity, or any other Enterprise, against any and all judgments, amounts paid in settlement, and expenses, including attorney’s fees, actually and reasonably incurred as a result of or in connection with any Proceeding, except as provided below.
No indemnification will be made to or on behalf of any such person if a
judgment or other final adjudication adverse to such person establishes that such person’s acts were committed in bad faith or were the result of active and
deliberate dishonesty and were material to the cause of action so adjudicated, or that such person personally gained in fact a financial profit or other advantage to
which such person was not legally entitled. In addition, no indemnification will be made with respect to any Proceeding initiated by any such person against the depositor, or a director or officer of the depositor, other than to enforce the terms of this indemnification provision, unless such Proceeding was authorized by the Board of Directors of the depositor. Further, no indemnification will be made with respect to any settlement or compromise of any Proceeding unless and until the depositor has consented to such settlement or compromise.
The depositor may, from time to time, with the approval of the Board of
Directors, and to the extent authorized, grant rights to indemnification, and to the advancement of expenses, to any employee or agent of the depositor or to any
person serving at the request of the depositor as a director or officer, or in any other capacity, of any other Enterprise, to the fullest extent of the provisions
with respect to the indemnification and advancement of expenses of directors and officers of the depositor.
Insofar as indemnification for liability arising under the Securities Act of
1933 (the “Act”) may be permitted to directors, officers and controlling persons of the depositor or the registrant pursuant to the foregoing provisions,
or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed
in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
Item 31. Principal Underwriter
(a) RiverSource Distributors Inc. acts as principal
underwriter for:
RiverSource Variable
Annuity Account 1
RiverSource Variable Annuity Account
RiverSource Account
F
RiverSource Variable Annuity Fund A
RiverSource Variable Annuity Fund
B
RiverSource Variable Account 10
RiverSource Account SBS
RiverSource MVA Account
RiverSource Account MGA
RiverSource Account for Smith Barney
RiverSource Variable Life Separate Account
RiverSource Variable Life Account
RiverSource of New York Variable Annuity Account 1
RiverSource of New York Variable Annuity Account 2
RiverSource of New York Account
4
RiverSource of New York Account 7
RiverSource of New York Account
8
(b) As to each director, officer or partner
of the principal underwriter:
Name and Principal Business Address* |
|
Positions and Offices with Underwriter |
| |
|
Chairman of the Board and Chief Executive Officer |
| |
|
|
| |
|
Director and Vice President - National Sales Manager |
| |
|
Senior Vice President and Treasurer |
| |
|
|
| |
|
|
*
The business address is 70100 Ameriprise Financial Center, Minneapolis, MN
55474.
(c) RiverSource Distributors Inc., the principal underwriter during Registrant’s last fiscal year, was paid the following commissions:
NAME OF PRINCIPAL UNDERWRITER |
NET
UNDERWRITING
DISCOUNTS AND
COMMISSIONS |
COMPENSATION ON REDEMPTION |
|
|
RiverSource Distributors, Inc. |
|
|
|
|
Item 32. Location of Accounts and Records
Item 33. Management Services
Item 34. Fee Representation
The RiverSource Life Insurance Company (the Company) hereby represents that the fees and charges deducted under the Contracts, in the
aggregate, are reasonable in relation to the services rendered, the expenses to be incurred, and the risks assumed by the Company.
The Company hereby represents that it is relying on the November 28, 1988 no-action letter (Ref. No. IP-6-88) relating to variable annuity contracts offered as funding vehicles for retirement plans meeting the requirements of Section 403(b) of the Internal Revenue Code. Registrant further represents that it will comply with the provisions of paragraphs (1)-(4) of that letter.
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of 1940, RiverSource Life Insurance Company, on behalf of the Registrant, certifies that it meets all of the requirements of Securities Act Rule 485(b) for effectiveness of this Amendment to its Registration Statement and has caused this Amendment to its Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Minneapolis, and State of Minnesota, on the 14th day of
August, 2026.
| |
RiverSource Variable Account 10 |
| |
|
| |
|
|
| |
|
Jason J. Poor Chairman of the Board and President |
As required by the Securities Act of 1933, this Amended Registration Statement has been signed by the Depositor on the 14th day of August, 2026.
| |
RiverSource Life Insurance Company |
| |
|
| |
|
|
| |
|
Jason J. Poor Chairman of the Board and President |
As required by the Securities Act of 1933, Amendment to this Registration Statement has been signed by the following persons in the capacities indicated on the 14th day of August, 2026.
| |
|
| |
Chairman of the Board and President (Chief Executive Officer) |
| |
| |
Senior Vice President – Corporate Tax |
| |
| |
Director, Senior Vice President and Chief Actuary |
| |
| |
Senior Vice President and Treasurer |
| |
| |
Director, Chief Financial Officer (Chief Financial Officer) |
| |
| |
|
| |
| |
Vice President and Controller (Principal Accounting Officer) |
| |
| |
Director, Senior Vice President – Insurance and Annuities Product Development and Management |
| |
| |
Director, Vice President – National Sales Manager |
| |
| |
Director, Vice President – RiverSource Service & Operations |
| |
| |
|
| |
| |
|
|
Nicole D. Wood Assistant General Counsel and Assistant Secretary |
|
|
Contents of
Registration Statement
This Registration Statement is comprised of the following papers and
documents:
RiverSource PortfolioEdge Advisory Variable
Annuity
The combined Statement of Additional Information and Financial Statements
for RiverSource Variable Account 10.
Exhibit
Index
| |
Form of Flexible Purchase Payments Deferred Variable Annuity contract and data pages for RiverSource PortfolioEdge Advisory VA |
| |
Opinion of counsel and consent to its use as to the legality of the securities being registered |
| |
Form of Initial Summary Prospectus |
| |
Power of Attorney to sign this Registration Statement |
| |
Resolution of Board of Directors regarding Power of Attorney |
