In a method for forming a semiconductor device, a gate electrode is formed over a semiconductor body (e.g., bulk silicon substrate or SOI layer). The gate electrode is electrically insulated from the semiconductor body. A first sidewall spacer is formed along a sidewall of the gate electrode. A sacrificial sidewall spacer is formed adjacent the first sidewall spacer. The sacrificial sidewall spacer and the first sidewall spacer overlying the semiconductor body. A planarization layer is formed over the semiconductor body such that a portion of the planarization layer is adjacent the sacrificial sidewall spacer. The sacrificial sidewall spacer can then be removed and a recess etched in the semiconductor body. The recess is substantially aligned between the first sidewall spacer and the portion of the planarization layer. A semiconductor material (e.g., SiGe or SiC) can then be formed in the recess.