A composite hard mask is disclosed that enables sub-100 nm sized MTJ cells to be formed for advanced devices such as spin torque MRAMs. The hard mask has a lower non-magnetic metallic layer such as Ru to magnetically isolate an overlying middle metallic spacer such as MnPt from an underlying free layer. The middle metallic spacer provides a height margin during subsequent processing to avoid shorting between a bit line and the MTJ cell in the final device. An upper conductive layer may be made of Ta and is thin enough to allow a MTJ pattern in a thin overlying photoresist layer to be transferred through the Ta during a fluorocarbon etch without consuming all of the photoresist. The MTJ pattern is transferred through the remaining hard mask layers and underlying MTJ stack of layers with a second etch step using a C, H, and O etch gas composition.