I'm assuming you've already looked into whether it would be legal to do this(.410 for deer is NOT legal in IA)-Assuming it's OK, try to get your hands on a smoothbore circuit judge, or better yet, an Enfield single shot .410 conversion that's had the chamber reamed to 3". When I've fired .410 slugs with rifle sights(using the Enfield, not the judge) accuracy was great, power was not. I'd say the .410 slug would be borderline at best, but if he keeps his shots within a reasonable distance and puts the hole in the right place they'll work.
Do you have any friends who have a 20 gauge(any configuration) he could fire a couple slugs out of first to see how he does? Don't spend $500 on a .410 unless you have to. If that's what it takes to get a gun he'll enjoy shooting and hunting with so be it, but if he can handle the 20 get an 870 combo, a couple hunts' worth of ammo(shot and slugs) and have some money left over from your $500 for a father/son trip to McDonald's.
ETA-When my nephew was 10 I let him duck hunt with my 20 gauge 870 and adult stock. He did fine. Get the youth model and the fit will be better, but I didn't have a youth model and he wanted to use my 20 gauge pump instead of his single shot. Best thing will be to try someone else's 20 before spending the money on one.