A method of forming a magnetic random access memory (MRAM) using a sacrificial cap layer on top of the memory cells and the structure resulting therefrom are described. A plurality of individual magnetic memory devices with cap layers are fabricated on a substrate. A continuous first insulator layer is deposited over the substrate and the magnetic memory devices. Portions of the first insulator layer are removed at least over the magnetic memory devices and then the cap layers are selectively removed from the magnetic memory devices, thus exposing active top surfaces of the magnetic memory devices. The top surfaces of the magnetic memory devices are recessed below the top surface of the first insulator layer. Top conductors are formed in contact with the active top surfaces of the magnetic memory devices. In an illustrated embodiment, spacers are also formed along the sides of the magnetic memory devices before the first insulator layer is deposited.