There is a big difference between the fine motor skills of a Transitional Kindergarten student and a Kindergarten student. Many TK lack the pre-writing skills needed to benefit from tracing on a dotted line. I had one little girl in my class last year who just couldn't do, no matter how hard she tried. What she could do what trace on a highlighted letter. (I hope you have all tried using a highlighter for tracing, because it is AMAZING for the kids who need extra support in fine motor skills!) And she could stay with in the lines of a letter outline.
I could not print out a highlighted paper without a crazy scary ink bill, but I could prepare letter outlines for my TK students in advance. This mini packet here is called Make the Letter and it is all about staying inside the letter outline to get the fingers and brain working together. Check it out.