Even sharp market sell-offs can have a silver lining for investors. Beyond today's dollar losses, they may offer an opportunity to boost tax savings tomorrow. President Donald Trump's April 2 announcement of "reciprocal" tariffs sent the major averages on a wild ride, spurring worries of stubborn inflation on one hand and heightened recession risk on the other. The S & P 500 has fallen more than 6% since news of the tariffs broke earlier this month, and the broad market index ended Wednesday roughly 14% off the high it reached in February. The sudden downdraft in stocks offers long-term investors at least one chance at redemption, however: They can convert a portion of savings they hold in traditional individual retirement accounts – where assets are tax deferred – to a Roth IRA, where securities can grow free of taxes and savers can make withdrawals free of tax in retirement. "You're making a silk purse out of a sow's ear," said Tim Steffen, CPA and director of advanced planning at Baird in Milwaukee. "The reason you convert when the market has fallen is twofold. First, you can move more shares into the Roth. Second, when everything recovers, it's happening in the tax-free account," he said. "You'd rather have that recovery happen in the Roth than in the traditional IRA." Go for growth The best assets to go into the Roth account are growth-oriented stocks. The once high-flying technology sector is down 18% in 2025, while consumer discretionary stocks – including Amazon and Tesla – is off more than 19%. The Nasdaq Composite , which includes marquee names such as Nvidia and Apple , ended Wednesday about 19% below its closing high, a whisker away from a bear market. If you're already holding these battered securities in a traditional IRA, consider working with your financial advisor or your brokerage firm to make an in-kind Roth conversion. This means transferring the stock from the traditional IRA to a Roth without cashing out the positions and buying them back. "Let's say you have an IRA with 10 stocks in it, see which ones fell the most irrationally and are most likely to have a full recovery," said Steffen. "Then you figure out what is the tax budget: How much are you willing to spend in taxes?" That's because the amount you convert to the Roth IRA will be taxed as ordinary income, meaning it's subject to a marginal rate as high as 37%. You might want to convert smaller amounts over time to spread the tax hit. It may also make sense to "barbell" conversions once you decide how much you can afford in taxes, said Jeffrey Levine, CPA and chief planning officer at Focus Partners Wealth in St. Louis. "At the beginning of the year, you think you'll convert $60,000, so maybe do $30,000 today and the other $30,000 later this year," he said. "If the market goes down more, you can convert more at lower values." Not right for everyone Roth conversions sound great from a long-term perspective, but investors should work with their accountant or financial advisor to determine whether they're a good call. "If the Roth conversion is a tax-efficient move for you, doing it when the market is down makes sense," said Levine. "But making a conversion you otherwise wouldn't have made? It may not be the right move for you." For starters, your time horizon is a factor. The stocks or ETFs you move into the tax-free account will need sufficient time to rebound to make the conversion worthwhile, especially after factoring in the tax cost. "If you plan to tap those Roth assets soon, paying taxes on the conversion may not pay off in time," said Zachary Rayfield, Vanguard's head of goals-based investing research. The taxes incurred – and their unintended consequences – are another thing to weigh. When you convert, you may inadvertently push the rest of your income into a higher tax bracket. This is especially painful for individuals who are approaching Medicare eligibility, as a conversion might result in substantially higher premiums for Medicare Part B and Part D prescription coverage. To take just one example, consider that an individual whose income is $106,000 or less pays a monthly Medicare Part B premium of $185, but if that income ranges from $106,000 to $133,000, the monthly premium rises to $259. At the top bracket for individuals whose income is greater than or equal to $500,000, the monthly premium is $629. Medicare premiums are based on your modified adjusted gross income from two years earlier, so conversions that you make in 2025 will be factored into premiums you pay in 2027. "You do the conversion today, but it might be a year and a half from now before you find out that it affects premiums," said Steffen. "A butterfly flaps its wings, and you get a higher tax liability." 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