An integrated circuit system that includes: providing a substrate including an active device with a gate and a gate dielectric; forming a first liner, a first spacer, a second liner, and a second spacer adjacent the gate; forming a material layer over the integrated circuit system; forming an opening between the material layer and the first spacer by removing a portion of the material layer, the second spacer, and the second liner to expose the substrate; and forming a source/drain extension and a halo region through the opening.