No problem at all, I usually only steep in about 1.2 qts per pound anyway, just a habit from mashing.
You do want to boil with the largest volume you can accomodate so if you can boil 4 gallons and only add 1 to the fermentor that's even better. The larger your boil volume the better, especially in lighter colored beers (read about Maillard reactions).
Something is always fermenting....
"It's Bahl Hornin'"
Kegged: Sour Saison, Pale Ale, Aggie Ale, Firestone DBA, De Koninck Blonde
Bottled: Belgian Quad (Grand Reserve), Derangement (Belgian Dark Strong)
On Deck: Pliny the Younger