Yes, you will pay tax on the amount coverted from your traditional IRA to a ROTH IRA in the year that you make the conversion.
Assuming you have the funds without having to take it out of your retirement account, it would be best to simply make a contribution to traditional IRA's for 2022, $5,700 for you and $4,700 for your spouse, in order to get the tax deduction in 2022. You can do that by April 18, 2023. Then, starting in 2023 you can do ROTH IRA conversions to transfer funds to your ROTH IRA accounts from the traditional IRA accounts in the amounts allowed and desired by you. There would not be a penalty for doing this, it is not considered an early distribution. You would be taxed at ordinary income tax rates on the amount converted.
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