you can't do what you want if it is truly a simple trust. By definition and law, a simple trust is required to distribute all ordinary income to the beneficiaries annually. what does the trust document say about income distributions? does it use the word "shall" or "may"? "shall" indicates a requirement. "may" means income distributions are at the discretion of the trustee. Such a trust would be a complex trust even if the trustee distributed all the income. also any distributions of corpus make the trust complex even simple trusts in their final year because of the distribution of corpus. .
