Human Interest today announced the launch of Compliance Guarantee, powered by a new AI-powered Predictive Compliance Monitoring capability designed to help eliminate 401(k) compliance surprises.
“The reality is that annual plan testing is largely a math exercise—and we live in a world where technology should be doing that heavy lifting automatically.”
Rakesh Mahajan, CRO at Human Interest
The San Francisco-based 401(k) provider said in a press release today that its Predictive Compliance Monitoring monitors plan health and predicts testing outcomes, offering employers visibility into their compliance status and potential financial impact, and helps reduce the uncertainty that has historically plagued plan sponsors and financial advisors.
“The retirement industry has treated 401(k) compliance like an annual guessing game played inside a black box with a back-office abacus. The reality is that annual plan testing is largely a math exercise—and we live in a world where technology should be doing that heavy lifting automatically,” said Rakesh Mahajan, Chief Revenue Officer at Human Interest.
“We’re pairing our payroll network of over 600 payroll integrations with Predictive Compliance Monitoring to stop the era of end-of-year administrative panic,” he added. “We’re giving business owners and financial advisors the foresight they need to make smart, proactive adjustments months before a deadline hits, with what we believe is the industry’s first true AI-powered innovation.”
Human Interest noted that retirement plan compliance monitoring is a challenge for many plan administrators and business owners. According to industry data, as many as 30% of all non-safe harbor 401(k) plans in the United States fail their mandatory annual nondiscrimination tests, leaving plan sponsors exposed to IRS tax penalties and DOL compliance scrutiny.
Traditionally, providers evaluate compliance retroactively at the end of the plan year, which Human Interest said may force businesses to issue unexpected refunds to high-earner participants—triggering potential tax liabilities for employees and penalties for employers. Over the last 5 years, Human Interest said it has processed over $60 million in retroactive plan refunds for employers.
Human Interest currently offers customers a suite of compliance support features, including 360 Degree Compliance Monitoring, 3(16) Fiduciary Services including annual IRS Form 5500 filing, Notice Delivery Protection, Audit Relief, DOL Audit Defense, and helping procure the ERISA fidelity bond. Through Predictive Compliance Monitoring, the company said it is building on this platform to transform compliance support—from a back-office retrospective service into a transparent, proactive solution.
The proprietary technology will proactively evaluate payroll cycles and recordkeeping data against core compliance metrics. Plan administrators are provided with a clean, actionable yellow/green tracking health indicator directly within their employer dashboard. Rather than simply displaying a static “today” status, the predictive monitoring projects participant gross wages and contributions through the end of the calendar year to potentially warn employers of impending compliance failures months before they occur.
Per today’s press release, key capabilities of the new solution include:
Regular Monthly Projections: A forecast of how plans may be tracking toward end-of-year Top Heavy, Actual Deferral Percentage (ADP), and Actual Contribution Percentage (ACP) tests.
Top-Heavy Cost Projection Calculator: An innovative predictive tool that goes beyond a basic pass/fail status to estimate the contribution amounts an organization may owe to bring a Top-Heavy plan back into balance.
Customized Actionable Guidance: In-line dashboard recommendations that guide employers toward structural changes—such as auto-enrollment adjustments or plan design amendments—to help neutralize issues before testing deadlines arrive.
Under the service standard announced today, the Guarantee covers multiple facets of the compliance spectrum from annual testing to filing, audit support, fiduciary services, and plan document management to help plans stay on track and helps eliminate surprises.
“The Human Interest Compliance Guarantee is the latest evolution of our innovative service model, designed to remove pain points employers were previously forced to accept from legacy providers,” Mahajan said. “We’ve always been committed to taking the manual heavy lifting out of compliance. Now, our AI-powered predictive capabilities enable us to move beyond simple compliance management to proactive, preventative oversight. Our goal is to ensure that for every employer, compliance testing becomes an invisible, effortless background process, freeing them to focus on running their business.”
Human Interest Predictive Compliance Monitoring will begin rolling out to existing non-safe harbor Human Interest plans this summer, with advanced monitoring for Top Heavy compliance. Proactive tracking for ADP and ACP testing will deploy throughout the remainder of the year.
More information about Human Interest’s new predictive compliance solution and the Compliance Guarantee can be found here: https://humaninterest.com/features/compliance-guarantee.
Guarantees are nothing new for Human Interest, which in 2025 rolled out a unique customer service guarantee before unveiling a 401(k) price match guarantee in January of this year.
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