I agree with all that Intuit needs to fix this issue. It is an issue for our business as well.
In the interim, after HOURS on the phone with Intuit support, one agent gave me a "work-around" that I believe "at this time" is the best we can do since Intuit does not seem to be willing to address this issue.
The work around is to max out the SIMPLE to 16000 (19500 for catchup). Then for the remaining amount, use a different employee deduction type for "401K Catchup". The allowable amounts are higher.
This will cause W2s to have two lines one them in box 12 (one for the SIMPLE and one for a 401K). This is not exactly accurate but my accountant has advised me that it should not be a problem. In the unlikely event it were questioned by the IRS, it can be shown that all funds went into the SIMPLE and that the amounts were allowed because of SECURE 2.0.
I would suggest you discuss with your own accountant before using this method. As I said before, it's a work-around - not perfect. But, this is our plan to get to our end-goal of being able to max out allowable contributions.
