Hi Britt,
It’s probably clearer to say that ldsc assumes A1 is the effect allele (the “reference allele” label has unfortunately acquired multiple meanings, and is used inconsistently even within the plink documentation), so plink’s output A1 is indeed the correct A1 to input for munge_sumstats.py.
Thankfully the impact of getting this wrong would be fairly manageable. For "munge_sumstats.py --merge-alleles”, the order of A1/A2 doesn’t matter as long as the pair is consistent with the HapMap alleles. For heritability estimation, the A1/A2 alleles have no impact. For genetic correlation, reversing your A1/A2 will flip the sign of the correlation, but the magnitude of the correlation and it’s p-value will be unchanged. (And depending on the strength of your prior expectations for the correlation the sign flip may be a sufficient red flag to diagnose that A1/A2 were incorrectly reversed).
Cheers,
Raymond