(Image credit: Getty Images)

Most people with about $1 million or more in pretax 401(k)s and IRAs see a rough market year and do exactly nothing. When the market is falling, paralysis feels like safety.

But a midterm election year pullback can be one of the most powerful tax planning windows available in personal finance.

Earlier this year, a client came to us with about $2 million in a traditional IRA . The market had pulled back roughly 8% — and she was nervous.

From just $107.88 $24.99 for Kiplinger Personal Finance

Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues

CLICK FOR FREE ISSUE

Sign up for Kiplinger’s Free Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Instead of sitting tight, we converted about $200,000 to her Roth IRA at the discounted value.…