A method of forming a memory device that in one embodiment may include forming a magnetic tunnel junction on a first electrode using an electrically conductive mask and subtractive etch method. Following formation of the magnetic tunnel junction, at least one dielectric layer is deposited to encapsulate the magnetic tunnel junction. Ion beam etching/Ion beam milling may then remove the portion of the at least one dielectric layer that is present on the electrically conductive mask, wherein a remaining portion of the at least one dielectric layer is present over the first electrode. A second electrode may then be formed in contact with the electrically conductive mask.