A butted contact structure is provided. In one embodiment, a structure includes a first transistor on a substrate, the first transistor comprising a first source or drain region, a first gate, and a first gate spacer being disposed between the first gate and the first source or drain region. The structure includes a second transistor on the substrate, the second transistor comprising a second source or drain region, a second gate, and a second gate spacer being disposed between the second gate and the second source or drain region. The structure includes a butted contact disposed above and extending from the first source or drain region to at least one of the first or second gate, a portion of the first gate spacer extending a distance into the butted contact to separate a first bottom surface of the butted contact from a second bottom surface of the butted contact.