I would certainly convert enough to create a tax liability equal to the education credit you qualify for. That's found money in retirement. (For 2010, make sure you elect to have the entire amount included in 2010 income when you file your 2010 return.)if OP's really fully on tax-free income, wouldn't it make sense to convert up to 0% bracket?I'm not sure what you mean. There is no zero bracket nowadays (thankfully a concept that was short-lived, because it was so difficult to understand). To flesh out my original suggestion, it would be first to calculate the amount of Lifetime Learning Credit generated by the qualified education expenses, then convert that into taxable income. To that add the standard deduction amount and the personal exemption amount. The total is the amount to convert from traditional to Roth which would result in zero Federal tax.State income tax is another issue, and this method would likely result in a state tax due. To make it totally tax free, work from the state numbers.PhilRule Your Retirement Home Fool
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