You can move the 2021 traditional IRA contribution to the ROTH as soon as you want. If there is a taxable distribution, because you deducted the contribution, you would have to report that in the year it applies to, which is 2021 in this example. You can have tax withheld when you do the rollover to cover the estimated tax burden. You could also not do a withholding and pay the tax when you file your tax return in 2022. However, in general if you owe more than $1,000 in taxes when you file your tax return, you may get penalized for underpayment of tax.
If you made the IRA contribution in 2022 but assigned it to 2021, you would need to report the rollover to the ROTH IRA on your 2021 tax return.
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