PAGE 1
Contract Surrender

An election to surrender a Contract may be made in writing to the home office of
IDS Life in Minneapolis,  MN. If required by IDS Life, the request for surrender
must be accompanied by the Contract if a request for the full surrender value is
being  made.  An election  to  surrender  a Contract  can be made only while the
Contract is in force prior to the earlier of the retirement date or the death of
the first to die of the annuitant or owner. The surrender value is determined on
the  basis  of the  accumulation  unit  value in  effect  on the date on which a
request for surrender is received by IDS Life in proper order.

A partial  surrender request not exceeding $50,000 may be made by contacting IDS
Life by telephone.  IDS Life has the  authority to honor any  telephone  partial
surrender request it believes to be authentic and will use reasonable procedures
to confirm that they are. This includes  asking  identifying  questions and tape
recording  calls.  As long as the procedures are followed,  neither IDS Life nor
its affiliates will be liable for any loss resulting from  fraudulent  requests.
At times when the volume of telephone  requests is unusually high, IDS Life will
take special measures to ensure your call is answered as promptly as possible. A
telephone  surrender  request will not be allowed  within 30 days of a phoned-in
address  change.  You may request that telephone  withdrawals  not be authorized
from your account by writing IDS Life.

The  surrender  value will be paid  within  seven days after the date on which a
proper request is received by IDS Life, except that under certain  circumstances
IDS Life may delay or suspend payments. See the Suspension and Delay of Payments
section.  You will be charged a fee if you request express mail delivery of your
payment.

An owner may  surrender  all or a portion of the  contract  value.  Any  partial
surrender must be for at least $250, and no partial  surrender can be made if it
would reduce the contract value after such surrender to less than $600.

Automated partial  surrenders may be made through a one-time written request (or
other method  acceptable  to IDS Life).  The minimum  surrender  amount from the
Contract  is $50,  and  such  surrender  can be made  on a  monthly,  quarterly,
semi-annual or annual basis. You may start or stop this service at any time, but
you must  give IDS  Life 30 days'  notice  to  change  any  automated  surrender
instructions  that are  currently in place.  Automated  partial  surrenders  are
subject to all of the other  contract  provisions and terms.  Automated  partial
surrenders  may be  restricted by  applicable  law. In addition,  the payment of
additional  purchase  payments,  if allowed under the Contract,  while automated
partial  surrenders are in effect,  may not be appropriate  and therefore is not
permitted.  Automated partial surrenders may result in taxes and penalties being
applied to all or a portion of the amount  surrendered.  See the Certain Federal
Income Tax  Considerations  section.  You should consult your tax adviser if you
have any questions about the taxation of your annuity.

No surrender can be made after the retirement  date or the death of the first to
die of the  annuitant  or owner.  Any amounts  surrendered  and charges that may
apply cannot be repaid. A surrender charge, which is a contingent deferred sales
charge,  will be imposed for any  surrender  made during the first eight payment
years of any purchase  payment.  The surrender charge applies  separately to the
initial purchase payment and to each additional purchase payment.  Regardless of
when a purchase  payment is made, the contract year in which a purchase  payment
is made is the first  payment year for that  purchase  payment,  and  succeeding
payment years continue to be measured separately for that


<PAGE>



PAGE 2 purchase payment.

For a partial surrender, accumulation units attributable to the earliest payment
year are  surrendered  first.  The  surrender  charge is 8 percent of the amount
surrendered  during the first  payment year and  decreases by 1 percent per year
thereafter to 1 percent in the eighth payment year. There is no surrender charge
on amounts  surrendered  after the  eighth  payment  year.  In no event will the
aggregate surrender charges imposed exceed 8.5 percent of the aggregate purchase
payments  received.  IDS  Life  may,  in its  discretion,  reduce  or  eliminate
surrender  charges for certain  group sales of the  Contracts.  See the Contract
Charges and Deductions -- Surrender Charges section. Owners should also be aware
that, under certain circumstances,  a surrender before the owner has reached the
age of 59-1/2  may be  subject  to a penalty  under  the Code.  See the  Certain
Federal Income Tax Considerations section.

Suspension and Delay of Payments

IDS Life will attempt to make  payments  under the  Contracts  within seven days
whenever the Account has cash available. However, IDS Life reserves the right to
defer making any such payments  under the  Contracts for up to six months.  This
reservation of the right to suspend  payments is only intended to be utilized in
the emergency circumstances set forth in the remainder of this section.  Subject
to any suspension of payments described below, IDS Life guarantees that payments
on death of the first to die of the  annuitant or owner prior to the  retirement
date will be made  within  seven days of receipt by IDS Life of its death  claim
requirements after the death of the annuitant or owner,  whichever occurs first.
In  addition,  payment  of  surrender  values  may be  delayed  if a check for a
purchase payment has not cleared the bank on which it was drawn.

IDS Life may suspend any payments due under the  Contracts  beyond the seven-day
period for up to six months when IDS Life  determines that there is insufficient
cash  available  to meet  all  current  surrender  requests  and  other  payment
obligations of the Account and the sale of the real estate related assets of the
Account could not be made on a timely basis on commercially reasonable terms. In
the event of any suspension of payments,  the cash available will be used in the
following order of priority:

First  --  to  meet  any   obligations  the  Account  has  other  than  Contract
obligations. Such obligations would include those expenses necessary to continue
the  operation of the Account,  other than fees to IDS Life,  which fees will be
deferred until ALL Contract obligations are satisfied.

Second -- to make  annuity  payments in full or pro rata  depending  on the cash
available.  All  annuitants  will be  treated  as a class,  including  those who
annuitized  during  the  suspension.  No other  payments  will be made until all
unpaid annuity payments are made.

Third -- to make  payments  due on the death of the  annuitant or the owner that
became  due and  payable  after the  declaration  of  suspension.  All payees of
payments on death will be treated as a class and  payments  may be made pro rata
depending upon the cash available.

Finally -- no  payments of  surrender  values  will be  permitted  during such a
suspension  while any  annuity  payments or  payments  on death  remain  unpaid.
Depending upon the cash available,  any payments of surrender values during such
suspension will be made in accordance with the order in which surrender requests
are received by IDS Life.


<PAGE>



PAGE 3
If a payment of a surrender or an annuity  payment is deferred,  the amount will
be determined  as of the end of the valuation  period during which the surrender
request was received or the annuity  payment was due,  and, with respect to such
amount, participation in the investment experience of the Account will cease. If
IDS Life  defers a payment of a surrender  or an annuity  payment for 30 days or
more, IDS Life will credit  interest on the amount of the payment at a rate of 3
percent  per  year  or  such  higher  rate  as  IDS  Life,  in  its  discretion,
establishes.  If IDS Life defers  payment on death for more than seven days, IDS
Life will  credit  interest  on the amount of payment at a rate of 3 percent per
year or such higher rate as IDS Life,  in its  discretion,  establishes  or that
which is required by law.

Owners who remain in the Account will bear the investment  risk that real estate
related  investments  of the  Account  will  have  to be  sold  under  emergency
circumstances  that could result in the  realization by the Account of less than
the investment value of such investments notwithstanding any suspension or delay
in payments as permitted under the Contracts.

Transfer of Ownership

The  owner  may  transfer  ownership  of the  Contract,  at any time  while  the
annuitant is living, by filing a transfer of ownership with IDS Life at its home
office.  IDS Life  will not be bound by any  transfer  of  ownership  until  the
written transfer in form and substance acceptable to IDS Life is received by it.
IDS Life is not responsible for the validity of any transfer. A transfer will be
effective  as of the date of  request  for the  transfer,  subject to any action
taken or payment made by IDS Life prior to receipt of the transfer.  IDS Life is
not liable as to any payment or other  settlement  made by it before  receipt of
the transfer.

INASMUCH AS A TRANSFER MAY BE A TAXABLE  EVENT,  OWNERS SHOULD CONSULT THEIR OWN
TAX ADVISERS SHOULD THEY WISH TO TRANSFER THEIR CONTRACTS.



<PAGE>