It's a polychaete worm either in the family Acrocirridae or Cirratulidae. If it's a cirratulid it belongs to genus Dodecaceria. The fact that it was free living in your sand bed makes me think that it's an acrocirrid. Both of them are relatives of the typical hair worm considered by reefers to be valuable members of their clean-up crews. They are particulate feeders who use their feeding tentacles to sweep the sand & pick up food.
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