What does it mean to have iniquity imputed to us?

Imputation of iniquity refers to the theological concept where our sins are not held against us due to the righteousness of Christ being credited to our account. Psalm 32:2 emphasizes this truth: 'Blessed is the man to whom the Lord does not impute iniquity.' This underscores the core tenet of justification by faith in Christ, wherein believers receive an unearned status of righteousness based on Christ's performance rather than our own flawed actions. This glorious exchange is central to the beauty of sovereign grace, illuminating God’s mercy toward sinful man.