I have a 1998 Ram 1500 it has the 360 in it and the other day had it in four wheel and then put it in nuetral to take it out and realized the 4X4 light on the gauge panel was staying on what could be the reason this is accurring and what could result

It's most likely your front axle coupling staying engaged. The coupling connects the two halves of the axle and operates the switch to show your locked into 4 wheel drive. The coupling is controlled by a vacuum diaphragm. There is also a switch in this same assembly that goes to the indicator inside the truck. There is two hoses that go to this diaphragm. One is to engage the coupling the other is to disengage it. Make sure you have vacuum on both hoses depending if you have 4 wheel drive selected or not. If you have vacuum on both lines look to diaphragm if not trace back lines to look for disconnection or bad hose.

Also your tranny should be ok as these are two separate items.

bravoimrustyoldmotorhead