Why is the distinction between law and gospel important?

Understanding the distinction between law and gospel is crucial in Reformed theology, especially in the context of salvation. The law exposes our sin and need for redemption, as illustrated in Romans 3:19-20, which teaches that by the law comes the knowledge of sin. In contrast, the gospel presents the grace of God through Christ, emphasizing that salvation is a gift, not based on human works (Romans 11:6). This distinction was highlighted by reformers like Martin Luther, who recognized that the law serves to convict us, while the gospel provides hope and life. Believers, therefore, are called to live under the precepts of the gospel, which reflect God's grace rather than a legalistic adherence to the law.