If my employer has continued to make contributions to a 401k account after terminating me 3 months ago, and I withdrawl that amount, am i in any way liable? Its thier mistake,yes?

It's called theft, and it is a crime. The courts allow that people and computers make mistakes. You know, or should reseanable know, that you are not entitled to the money and taking it with intent to deprive the company of it is theft. Alert the company to their mistake and determine a way for them to get the money back.

I tend to agree. Have you browsed through the information in LawInfo's Free Legal Resource Center to learn more about your issue yet? See: http://www.lawinfo.com/consumer.html and http://resources.lawinfo.com/en/index.html. You can certainly try to speak to a lawyer to determine what legal options may be available. In the meantime, you may be able to learn more on your own. Search the "Free Legal Resources" tab, or browse the Consumer Resources. Good luck.