Is that $7k really post-tax money if you used it to reduce your taxable income? That's what it means to take it as a deduction, you deduct that amount from your taxable income, and that lowers your overall taxes. Some people don't qualify to reduce their taxable income with IRA investments, and yet they put money into them anyway. Funds that did not lower your taxable income are the ones that go on form 8606 and add to your IRA basis. There's a reason Turbo Tax did not generate form 8606 for you, you deducted those funds and lowered your taxable income, they are no longer non-deductible funds when you do that.
