At 71, the law states that a LIRA must be converted into either a Life Income Fund or a life annuity. A life annuity acts similar to a pension, providing a stable income stream through regular payments. On the other hand, a life income fund is more flexible, only requiring that the individual withdraws a minimum amount from their account each year. Other than that minimum withdrawal amount, the remainder of the money remains in your account, allowing you the freedom to invest as you see fit.