I have a participant whose 2000 required minimum distribution is only $7.79. Does anyone know if there is an exception to the minimum distribution rules if the amount falls below a certain level?

I am not aware of any exception. However, I have talked to practitioners over the years who had an internal policy of not distributing any amount under $1 (I do not believe there is any authority to do even that).

The only de minimis distribution rule I know of is the one that states that, for plan qualification correction purposes (Rev. Proc. 2000-16 and preceding), distributions under $20 may not have to be made if the cost of processing the distribution would be greater than $20.

I'd love to hear others practices and opinions on this issue of very small distribution amounts.