A method for fabricating an MRAM bit that includes depositing a spacer layer that protects the tunneling barrier layer during processing is disclosed. The deposited spacer layer prevents byproducts formed in later processing from redepositing on the tunneling barrier layer. Such redeposition may lead to product failure and decreased manufacturing yield. The method further includes non-corrosive processing conditions that prevent damage to the layers of MRAM bits. The non-corrosive processing conditions may include etching without using a halogen-based plasma. Embodiments disclosed herein use an etch-deposition-etch sequence that simplifies processing.