Non Qualified Annuity

[tbonpc]

My question is I have a non quaified annuity that I want to cash in on Lum Sum. The annuity was contracted in july 2009 on a 7 year maturity. This annuity was contracted with cash from savings not an employer benefit or retirement plan. I am 56 and my question is what taxes would Ihave to pay for cashing it in early. Do I have to pay taxes on the initial investment as the initial investment was earned income I had saved and already taxed when I earned it. Will I have to pay a penalty for being under 59 1/2 on the cost of purchased, that is on the amount I originally put in or just on the intrest? Thanks. I have read the IRS pub 575 but not real clear on this.