Mounting the sight farther forward can give you better target acquisition actually, hence the concept of the 'scout' style forward scope mount on rifles. The red dot can be mounted anywhere really, it does not affect the accuracy, only how you acquire the sight picture when you go to aim, and on the short difference in distance on the AR's rail, it really doesn't make much difference. As for co-witness, when the red dot and irons are both sighted in the same, looking through the irons you will see the red dot right on top of the front sight post, if you are looking at the target from above the irons, the red-dot will still appear on target, the irons of course will not.