Methods for forming a magnetic tunnel junction (MTJ) storage element and MTJ storage elements formed are disclosed. The MTJ storage element includes a MTJ stack having a pinned layer stack, a barrier layer and a free layer. An adjusting layer is formed on the free layer, such that the free layer is protected from process related damages. A top electrode is formed on the adjusting layer and the adjusting layer and the free layer are etched utilizing the top electrode as a mask. A spacer layer is then formed, encapsulating the top electrode, the adjusting layer and the free layer. The spacer layer and the remaining portions of the MTJ stack are etched. A protective covering layer is deposited over the spacer layer and the MTJ stack.