Raziel and Verdandi gave great explanations. This is indeed how the two are characterized.
I just wanted to add:
LFA and HFA are terms we're using right now, but they're deceptive and not politically correct. Functioning can mean many things despite IQ results, verbal ability, and whether or not someone needs help with daily tasks.
Mental retardation is sort of one of those labels that needs to go away. I think it may not exist. It's like "idiot." There used to be categories of people with problems socially functioning and some of these categories were idiot, imbecile, etc that we now know as insults. The reason the categories went away is because an "idiot" could mean someone with cognitive impairment due to birth defects, accident, disease, etc but ALSO someone with LFA who is very active and able in ways that aren't recognized. We categorize people differently now, so we have LFA, TBI (traumatic brain injury), and many, many other labels that point more to the biological difference between that person and the typically developing/typically functioning population.
So what does mental retardation mean? Cognitive impairment due to...something. So the person would be categorized differently. With a learning disability, brain damage, a disease, and so on. It could mean that the person doesn't want to respond to tests because he or she doesn't feel like it.
Also, people of color, poor people, immigrants, and other minorities are more likely to be diagnosed with LFA instead of HFA and also ADHD, schizophrenia, cognitive defects, and other stigmatized diagnoses. The term "mental retardation" is also much more likely to be used with minorities than White people from the middle and upper classes.