My son has almost completed Trach Your Child to Read in 100 Easy Lessons. He is doing great. He will be in first grade next year-doeshe have to do level 1 for All About Reading or can we go ahead to level 2?
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I know that with AASPELLING you are supposed to begin with level 1 regardless of age/grade/level, because level 1 lays the foundation of all other levels. I have not used AAR, but I imagine it’s similar to AAS in this regard. Those who feel their child is above level 1 in AAS usually begin with level 1 for the foundation skills and then just move through it at a faster pace. I’d imagine it would be the same for AAR - you can always move faster if necessary. 
I think it depends on how familiar he is with basic phonics rules. The AAR program moves a little slower in my opinion, so if he’s reading okay then you’re probably fine to start with Level 2. AAS Level 1 has the majority of phonics/spelling rules in them, so I’d definitely suggest starting with that level if you end up using AAS 