SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, D.C.  20549

                                      FORM 10-Q

(Mark one)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

      For the quarterly period ended September 30, 1998

                             OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934

For the transition period from               to              


                   COMMISSION FILE NUMBER 33-13375

                         IDS LIFE ACCOUNT RE
                                 OF
                     IDS LIFE INSURANCE COMPANY

         (Exact name of registrant as specified in its charter)


               MINNESOTA                         41-0823832

   (State or other jurisdiction of           (I.R.S. Employer
    incorporation or organization)            Identification No.)


      IDS TOWER 10, MINNEAPOLIS, MINNESOTA            55440-0010

(Address of principal executive offices)              (Zip Code)


Registrant's telephone number, including area code   (612) 671-3309



Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for shorter period
that the registrant was required to file such reports), and (2) has been 
subject to such filing requirements for the past 90 days.

Yes   X     No      



<PAGE>



The Registrant is a separate  account of IDS Life  Insurance  Company (IDS 
Life)established  pursuant to the  insurance  laws of the State of Minnesota 
for the purposes of funding real estate variable  annuity  contracts.  Unless
otherwise specifically  noted,  the  information  set forth  herein  only  
relates  to the operations of the  Registrant  (the  "Account") and not to 
the operations of IDS Life.



<PAGE>

PART 1 - FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

                                    IDS LIFE ACCOUNT RE
                                             of
                                   IDS LIFE INSURANCE COMPANY

                                        BALANCE SHEETS

<TABLE>

                                                        Sept. 30,       Dec. 31,
                                                            1998           1997

                                                     (Unaudited)
                                              -- ----------------  -------------
Assets:
<S>                                        <C>                    <C>
    Cash                                                $3,558          $82,887
    Investments in securities, at value (Note 1)
       (identified cost of $5,295,040 and $5,282,201
       at Sept. 30, 1998 and December 31, 1997,
       Respectively)                                 5,294,060        5,282,201
    Investments in unconsolidated joint ventures,
       at fair value (cost of $36,301,355 and
       $36,218,770 at Sept. 30, 1998
       and December 31, 1997, respectively)         23,217,348       23,134,763

                                                  --------------  -------------
           Total assets                            $28,515,512      $28,499,851
                                                 ================ =============

Liabilities:
    Payable to IDS Life for:
       Operating expenses                              107,927        72,008
       Contract terminations                            10,006        22,567
    Accrued mortality and expense risk fee              25,866        28,961
    Accrued asset management fee                        32,332        36,200

                                         -------------------  -----------------
      Total Liabilities                            $176,131           $159,736
                                         ===================  =================

Contract Owners' Equity:
    Net assets applicable to Variable Annuity
       contracts in accumulation period         $28,339,381        $28,340,115
                                         ===================  =================

Accumulation units outstanding                   26,227,616         27,339,211
                                         ===================  =================

Net asset value per accumulation units                $1.08              $1.04
                                         ===================  =================


See accompanying notes to financial statements.
</TABLE>


<PAGE>




                                            IDS LIFE ACCOUNT RE
                                                    of
                                        IDS LIFE INSURANCE COMPANY

                                         STATEMENTS OF OPERATIONS
                                                (Unaudited)
<TABLE>


                                                     For the nine months ended
                                   --------------------------------------------
                                              Sept. 30,                Sept. 30,
                                                  1998                    1997
                                      -------------------     ------------------
Income:
<S>                                 <C>                      <C>
  Interest income                    $           218,160      $         384,607
  Account's equity in earnings of
  unconsolidated joint ventures                1,552,801              1,699,636
  Other income                                        --                 54,134

                                       -------------------     -----------------
Total income                                   1,770,961              2,138,377
                                       -------------------     -----------------

Expenses:
  Asset management fee                           294,740                333,884
  Mortality and expense risk fee                 235,792                267,108
  Other operating expenses                        54,207                 46,866
  Unrealized depreciation on securities              434                     --

                                        ------------------      ----------------
Total expenses                                   585,173                647,858
                                        -----------------       ----------------

Net income                         $           1,185,788        $     1,490,519
                                        ==================      ================

See accompanying notes to financial statements.
</TABLE>



<PAGE>



                         IDS LIFE ACCOUNT RE
                                   Of
                        IDS LIFE INSURANCE COMPANY

                        STATEMENTS OF OPERATIONS
                            (Unaudited)



<TABLE>

                                        For the three months ended
                                     ------------------------------------------

                                             Sept. 30,              Sept. 30,
                                                 1998                  1997
                                     -----------------------   ----------------
Income:
<S>                                 <C>                        <C>
  Interest income                    $         71,698           $   104,754
  Account's equity in earnings of
  unconsolidated joint ventures               466,501               564,537

                                          -------------------   ----------------
Total income                                  538,199               669,291
                                          -------------------   ----------------

Expenses:
  Asset management fee                         98,841               106,625
  Mortality and expense risk fee               79,073                85,300
  Other operating expenses                     12,575                19,516
  Unrealized depreciation on securities           434                    --
                                          --------------------   ---------------
                                              
Total expenses                                190,923               211,441
                                          --------------------  ----------------

Net income (loss)                   $         347,276           $   457,850
                                          ====================   ===============

See accompanying notes to financial statements.

</TABLE>

<PAGE>





                             IDS LIFE ACCOUNT RE

                                    of
                           IDS LIFE INSURANCE COMPANY
 
                           STATEMENTS OF CASH FLOWS

                               (Unaudited)

<TABLE>
                                                    For the nine months ended
                                                       ----------------------------------------

                                                          Sept. 30,            Sept. 30,
                                                            1998                 1997
                                                       ------------------  ------------------
Cash flows from operating activities:
<S>                                                 <C>                    <C>
  Net Income                                         $         1,185,788 $         1,490,519

Adjustments to reconcile net income to net cash
used in operating
activities:
  Account's equity in earnings of unconsolidated
  joint ventures                                             (1,552,801)         (1,699,635)
  Change in other assets                                             --               4,277
  Change in payable to IDS Life for operating expenses           35,919            (42,340)
  Change in accrued mortality and expense risk fee              (3,095)             (4,105)
  Change in accrued asset management fee                        (3,868)             (5,131)
  Change in other  liabilities                                       --             200,940
  Change in payables and other liabilities related
  to wholly-owned real estate property                                --            (79,090)
  Change in unrealized depreciation of
  investment in securities                                          434                   --
                                                         --------------------  ------------------
Total adjustments to net income                                  (1,523,411)         (1,625,084)
                                                         --------------------  ------------------

Net cash used in operating activities                              (337,623)           (134,565)
                                                         --------------------  ------------------

Cash flows from investing activities:
  Distributions received from joint ventures                     1,470,216           1,882,670
  Net sales (purchases) of short-term securities                  (12,840)           3,855,746

                                                       --------------------  ------------------
Net cash provided by investing activities                        1,457,376           5,738,416
                                                       --------------------  ------------------

Cash flows from financing activities:
  Proceeds from sales of contracts                                   3,206              14,536
  Payments for contract terminations                           (1,202,288)         (5,721,124)

                                                       --------------------  ------------------
Net cash used in financing activities                          (1,199,082)         (5,706,588)
                                                       --------------------  ------------------

Net decrease in cash                                              (79,329)           (102,737)
Balance of cash at beginning of year                                82,887             102,737
                                                       --------------------  ------------------

Balance of cash at end of period                     $               3,558 $                --
                                                       ====================  ==================

Supplemental cash flow disclosure:
  Cash paid for mortgage interest & revolving loan   $                  -- $                --
                                                       ====================  ==================

See accompanying notes to financial statements.

</TABLE>

<PAGE>
                                 IDS LIFE ACCOUNT RE
                                             of
                             IDS LIFE INSURANCE COMPANY

                               September 30, 1998

                          NOTES TO FINANCIAL STATEMENTS
                                  (Unaudited)

1.       GENERAL

         In  the  opinion  of  the  management  of IDS  Life,  the  accompanying
         unaudited financial  statements for IDS Life Account RE (the "Account")
         contain  all   adjustments   (consisting   of  only  normal   recurring
         adjustments)  necessary  to  present  fairly its  balance  sheets as of
         September 30, 1998 and December 31, 1997;  statements of operations for
         the three and nine months ended  September  30, 1998 and 1997;  and the
         statements  of cash flows for the nine months ended  September 30, 1998
         and 1997.  These  statements are condensed and therefore do not include
         all of the  information  and footnotes  required by generally  accepted
         accounting principles for complete financial statement disclosure.  The
         statements  should be read in conjunction with the Account's  financial
         statements as of and for the year ended December 31, 1997 and the notes
         thereto contained in the Account's prospectus dated April 30, 1998. The
         results of operations for the nine months ended  September 30, 1998 are
         not necessarily indicative of the results expected for the full year.

<PAGE>

2.       INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

         Unconsolidated Joint Ventures - Summary Information

         Summary   information   for  the   Account   of  its   investments   in
unconsolidated  joint ventures for the nine months ended  September 30, 1998 and
1997 is as follows:

                                              For the nine months ended
                                                   September 30
                                              1998                1997
                                              ----                ----

      Account's share of net
       investment income from
       unconsolidated joint ventures        $1,552,801         $1,699,636

      Total net investment income of
       unconsolidated joint ventures       $18,590,170        $14,426,913

      Total income of unconsolidated
       joint ventures                      $35,183,000        $35,277,000




<PAGE>


Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS


Financial Condition and Results of Operations

For the Nine Months Ended September 30, 1998 Compared to the Nine Months Ended
September 30, 1997 -

Net assets  increased  from  $28,499,851  at December 31, 1997 to $28,515,512 at
September 30, 1998.  During this same time period,  the accumulation  unit value
increased  from  $1.04  to  $1.08.  The  Account  experienced  net  terminations
amounting to $1,199,082 for the nine months ended September 30, 1998 compared to
net  terminations of $5,706,588 for the nine months ended September 30, 1997. In
the nine months ended  September 30, 1998,  and the nine months ended Sept.  30,
1997, IDS Life had not purchased any accumulation units.

Recorded net income for the nine months ended  September 30, 1998 was $1,185,788
compared to $1,490,519 for the nine months ended September 30, 1997.

Interest income represents income earned in 1998 on the Account's  investment in
short-term  securities.  Interest  generated  from  short-term  investments  was
$218,160 for the nine months ended  September 30, 1998.  Interest income for the
nine months  ended  September  30, 1997 was  $384,607.  The decrease in interest
income for the nine months ended  September 30, 1998 compared to the nine months
ended September 30, 1997 was due primarily to higher average short-term balances
in 1997. Short term investments  decreased towards the end of 1997 due primarily
to net account terminations as discussed below.

For the nine months ended  September 30, 1998, the Account's  recorded equity in
earnings  of  its  unconsolidated  joint  ventures  (N/S  Associates,   Monmouth
Associates and 1225  Connecticut) was $1,552,801  compared to $1,699,635 for the
nine months ended  September  30, 1997.  The decrease is due  primarily to lower
rental income achieved at Southridge and Northridge Malls due to lower effective
rents.

Northridge Mall continues to be adversely  affected by the perception that it is
an unsafe place to shop.  This  perception  has resulted in declining  sales and
occupancy over a three-year  period.  Compounding the problem of declining sales
are the high  operating  costs for tenants at the mall.  Occupancy has also been
affected by tenant  bankruptcies  over the past years. As of September 30, 1998,
occupancy of the mall shops was approximately 59%,  including  temporary tenants
under short term leases.

To  counter  the  negative   perception  of  Northridge   Mall,  N/S  Associates
implemented certain capital improvements and operational programs to improve the
shopping center's safety and appearance, as well as instituted certain marketing
and public relation efforts to enhance its image.  Certain recent positive sales
trends  appear to indicate a modest  improvement;  however,  elimination  of the
negative  perception is expected to take some time. In addition,  N/S Associates
is  seeking  to  increase  occupancy  at the  shopping  center  by  aggressively
marketing space for new and renewal tenants through leasing incentives,  as well
as  continuing  to cooperate  with  existing  tenants who need  short-term  rent
reductions  in order to retain  occupancy  of their  space.  Part of the leasing
strategy includes  targeting certain  well-recognized  retailers as a group that
would become  tenants at the shopping  center.  It is expected  that the draw of
this group of tenants would help the shopping  center gain leasing  momentum and
aid in future leasing efforts.

As of September  30, 1998,  occupancy of  Southridge  Mall which is owned by N/S
Associates was approximately 90%,  including  temporary tenants under short-term
leases.

The Account paid asset  management  and mortality  expense risk fees of $530,532
and  $600,992  for  the  nine  months  ended   September   30,  1998  and  1997,
respectively.


<PAGE>


Liquidity and Capital Resources

For the Nine Months Ended September 30, 1998 Compared to the Nine Months
Ended September 30, 1997 -

At  September  30,  1998,  the Account had cash and  investments  of  short-term
securities of approximately  $5,298,164 as compared to approximately  $5,335,088
at December 31, 1997.

The  liquidity  requirements  of the Account  have  generally  been met by funds
provided from the Account's  short-term  investments,  cash  distributions  from
unconsolidated  joint ventures,  operating cash flow, interest income,  proceeds
from the sale of West Springfield  Terrace  Apartments,  the loan repayment from
Riverpoint Center,  proceeds from sales of contracts,  borrowings under the line
of  credit  from  IDS  Life  and  purchases  of  accumulation  units by IDS Life
discussed  below.  The primary  uses of funds  currently  are expected to be for
asset  management  and mortality and expense risk fees and payments for contract
terminations and redemption units held by IDS Life.

Effective  May 1, 1995,  new contract  sales of the Account  were  discontinued.
Additional  purchase payments continue to be accepted for existing  contracts in
amounts  specified  in  the  Account's  prospectus,  whether  by  means  of  the
previously established bank authorizations or otherwise. Existing contracts also
continue to be serviced and surrender requests will be honored.

IDS Life has purchased  accumulation  units in order to maintain the Account and
its liquidity.  IDS Life made these payments so that no contract holder would be
disadvantaged because sales of new contracts have been discontinued. The initial
payments for accumulation units that IDS Life made into the Account were used to
pay off the amount that the Account had  borrowed  under its  revolving  line of
credit.  As  of  September  30,  1998,  IDS  Life  had  purchased  approximately
26,227,616 accumulation units.

By  purchasing  accumulation  units,  IDS Life has an ownership  interest in the
Account.  Since IDS Life does not  purchase  a  contract,  it is not  subject to
surrender  charges.   However,  IDS  Life,  as  holder  of  accumulation  units,
participates  in the  increase  or  decrease  in  the  value  of  the  Account's
investments just as other owners of accumulation  units do. IDS Life may realize
a gain or loss on its accumulation units when redeemed.

IDS Life currently expects to hold the accumulation units it purchases until the
surrender of all outstanding contracts or until the Account's liquidity improves
(through,  for example,  one or more sales of real estate  related  investments)
thereby permitting the Account to satisfy its anticipated contract  obligations.
Because IDS Life may purchase a significant  amount of accumulation  units,  IDS
Life may be subject to certain conflicts of interest it would not otherwise have
if it had not purchased such accumulation units, including,  among other things,
a conflict in approving  periodic  valuations of real estate investments made by
the Investment Adviser.

Since the Account has experienced substantial net contract terminations over the
past  several  years,  the Account  does not intend to acquire  additional  real
estate related investments.  During 1996, the Account liquidated two real estate
related  investments.  Further, the Account intends to liquidate the real estate
related  investments  that it currently  holds when it becomes  advantageous  or
necessary  to do so.  To the  extent  funds of the  Account  are not used to pay
obligations of the Account,  including  those under existing  contracts,  or the
redemption  of  accumulation  units  purchased  by IDS Life,  such funds will be
invested in short-term  debt  instruments and possibly  intermediate-term  bonds
with maturities of up to five years.

Through  September  30,  1998,  Monmouth  Associates  had  funded  approximately
$25,905,000 of the renovation  loan for Monmouth Mall.  Fundings of principal on
the loan have been made from cash  reserves  held by Monmouth  Associates,  cash
flow from  interest and ground rent payments  received from the  borrower/lessee
and capital  contributions made to Monmouth  Associates by its partners pro rata
based  upon  their  respective  interests.   The  aggregate  amount  of  capital
contributions  to finance the loan is  approximately  $9,830,000.  The Account's
share of these capital  contributions is approximately  $685,000.  The aggregate
amount of the  renovation  loan,  including  accrued  and  deferred  interest of
approximately $1,300,000, is currently expected to be approximately $27,205,000.
Monmouth Associates may also be required to make certain additional loans to pay
a portion of the costs of certain tenant  improvements or other ordinary capital
expenditures.  In addition, Monmouth Associates may provide additional financing
to the  borrower/lessee  in order to pay costs to be incurred in connection with
the  replacement  or expansion of a  department  store tenant at Monmouth  Mall.
However, it is not currently expected that this would occur during 1998.

The renovation is complete.  The occupancy of mall shops and outparcel  space at
the  shopping  center as of  September  30, 1998 was  approximately  85 percent.
However, the mall shops and outparcel space are approximately 94 percent leased.
Leasing and  occupancy at the shopping  center have been  adversely  affected by
tenant bankruptcies occurring over the past several years.

N/S Associates currently expects that it will incur approximately  $1,400,000 in
1998 for  tenant  improvement,  asbestos  removal  and  other  capital  items at
Northridge  and  Southridge  Malls.  Actual  amounts  expended  in 1998 may vary
depending on a number of factors,  including actual leasing activity, results of
property  operations,  liquidity  considerations  and market conditions over the
course of the year. N/S Associates undertakes asbestos removal from time to time
at portions of the Northridge and Southridge  Malls as tenant spaces are vacated
and prior to occupancy by new tenants. The cost of tenant improvements, asbestos
removal and other  capital  items  generally  will be provided out of cash flows
from the properties. N/S Associates expended approximately $2,236,000 for tenant
improvements, asbestos removal and other capital projects in 1997.

In the first quarter of 1998, N/S  Associates has selected a third-party  broker
and is marketing the Northridge and Southridge  Malls.  During the quarter,  N/S
Associates  entered into a non-binding  letter of intent to sell the  Northridge
and Southridge Malls. The prospective  purchaser (an independent third party) is
currently conducting its due diligence review with respect to the properties and
is expected to complete  such  reviews by the end of 1998.  The letter of intent
executed by N/S Associates  and the  prospective  purchaser is  non-binding  and
consummation  of the  proposed  transaction  is subject to the  satisfaction  of
various  conditions.  Therefore,  there can be no assurance that a sale of these
properties will be consummated on any terms.

The 1225 investment corporation has committed to a plan to sell the property and
during  the  second  quarter  of 1998 began  marketing  the  property  for sale.
However,  there can be no assurance that a sale  transaction on acceptable terms
will be consummated.

At September 30, 1998,  real property  investments  (through two  unconsolidated
joint  ventures,  N/S  Associates  and 1225  Connecticut,)  land  sale-leaseback
investments (through an unconsolidated  joint venture,  Monmouth Associates) and
short-term  investments  represented  51  percent,  31 percent and 19 percent of
total assets,  respectively.  At September 30, 1997, real property  investments,
mortgage loan and land  sale-leaseback  investments  and short-term  investments
represented 50 percent, 29 percent and 21 percent of total assets, respectively.


<PAGE>



                      PART II.  OTHER INFORMATION
                      ---------------------------

Item 1. LEGAL PROCEEDINGS

        There are no material  current or pending  legal  proceedings  which the
Registrant is a party to, or to which the Registrant's assets are subject.

Item 2. CHANGES IN SECURITIES

        Not applicable

Item 3. DEFAULTS UPON SENIOR SECURITIES

        Not applicable

Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

        Not applicable

Item 6. EXHIBITS AND REPORTS ON FORM 8-K

        (A) Exhibits

                  4.1 Form of  Deferred  Variable  Annuity  Contract  is  hereby
         incorporated herein by reference to Exhibit 4 to the Account's Form S-1
         (as amended), File Number 33-13375, filed July 17, 1987.

         4.2  Copy of  mortgage  loan  documents  relating  to West  Springfield
         Terrace  Apartments  is  hereby  incorporated  herein by  reference  to
         Exhibit  4.2 to the  Account's  Form  S-1  (as  amended),  File  Number
         33-13375, filed April 12, 1990.

            4.3 Copy of the line of  credit  agreement,  dated  March  30,  1994
         between  IDS Life and the  Account  (including  a copy of the  executed
         promissory  note,  dated  March  30,  1994) is hereby  incorporated  by
         reference to Exhibit 4.3 to the Account's Form 10-K Report for the year
         ended December 31, 1993, File Number 33-13375, filed April 5, 1994.

         27.1 Financial Data Schedule of the Account for the period ended 
         September 30, 1998 is filed herewith.

          (B) Report on Form 8-K

         No reports on Form 8-K were required to be filed by the  Registrant for
         the three months ended September 30, 1998.



<PAGE>



                           SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.


                         IDS LIFE ACCOUNT RE
                                 of
                      IDS LIFE INSURANCE COMPANY
                      ______________________________ 
                             (Registrant)




Date:  November 13, 1998                       /S/ Stuart Sedlacek   
                                              -----------------------
                                               Stuart A. Sedlacek
                                               Senior Vice President - Finance
                                               Chief Financial Officer