A method includes forming an active layer, forming a gate structure above a channel region of the active layer, forming a sidewall spacer adjacent the gate structure, forming a first dielectric layer adjacent the sidewall spacer, recessing the gate structure to define a gate cavity, forming an inner spacer in the gate cavity, forming a cap layer in the gate cavity, recessing the first dielectric layer and the sidewall spacer to expose sidewall surfaces of the cap layer, removing the inner spacer to define a first spacer cavity, forming an upper spacer in the spacer cavity and contacting sidewall surfaces of the cap layer, forming a second dielectric layer above the upper spacer and the cap layer, and forming a first contact structure at least partially embedded in the second dielectric layer and contacting a surface of the upper spacer.