Choosing your pair for breeding might be a daunting task. There are several purposes for this , one is to pair to obtain a certain type or breed, called selective breeding. You can obtain an "Albino" cockatiel (Technically a double mutation) by pairing a whiteface and a lutino. Many breeders believe (and with some scientific back-up) that letting the cockatiels "choose" their own mate produces stronger bonds and stronger chicks in effect, this is called natural pairing. These options are within your grasp but the basic requirements stay the same.
Age. Cockatiels are capable of breeding at 5-6 months of age but breeders are strongly against it. The parents are too young and most commonly irresponsible parents. They have little patience and readily abandon the clutch. Some suggests to breed Them at 18 months of age and there is no disputing that, but experience tells me that at just about 14 months of age, cockatiels are ready and capable parents. If you have all the time in the world, there is no reason not to stick to the 18 month rule.
Health Condition. breeding is a stressful, long term activity, you must prepare the pair for this. "Peak form" is the key. Provide eggfood, calcium in the form of eggshell and cuttle-bone, greens and the daily seed supply. Build up their health at least two months before breeding time. Cockatiels in captivity doesn't have a breeding season, you provide the triggers and they will respond.
Sexing your Male and Female: read this link Sexing your cockatiel