That is an Aiptasia Anemone and is considered to be the bane of saltwater tanks. It can and will sting encroaching corals. You need to get rid of it ASAP since they can multiply pretty quickly. There are lots of methods to get rid of them, from getting animals that eat them such as Peppermint Shrimp and Copperband Butterflies to more direct methods like Joe's juice and boiling water injected into them. Do a search on the board here for them and you'll find tons of info. Personally, I use Joes Juice. Works great...