You can make your full contribution to your 401(k) without too much concern.
Whether the IRS determines your business to be a hobby and disallows losses, is a more complicated process than just the bottom line of Schedule C. As long as you are able to clearly show an intent to make a profit, you are operating a business and not a hobby.
If you show a history of losses, particularly large losses, over a period of time (generally three or more years) the IRS may be more likely to look into your situation but the nature of a 401(k) deduction is a bit different than writing off other types of business expenses.
As long as you keep good, organized records you should not shy away from taking legitimate business deductions just because you worry that the IRS may question them. It's okay for them to ask the questions that you have good answers for!
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