This sweater is fully reversible (front to back or inside out). Also because the cuff has the same number of stitches as the sleeve, the cuff can be worn down over the hand for warmth or rolled up once or twice.
This pattern is knitted in the round from the top down. Directions are for worsted (4-ply) yarn and size 7 needles (gauge: 4 st/inch, 6 rows/inch). Changes for double-knit (2-ply) yarn are in brackets. (size 5 needles, gauge: 5.5 st/inch, 7.5 rows/inch) This gives a sweater for a 14" neck and 38-40" around. For the turtleneck option, start with one size larger needles than the rest of the pattern, if desired. The raglan seam is k2p2k2 with the purl stitches belonging to the sleeve. (The picture is worked with no change of needle and 30 rows of ribbing.)
Neck ribbing: Using a 16" or 24" circular needle, cast on 80  stitches, using chain cast on. Join by working patt into the first stitches cast on, starting with p2. Make sure the ribbing is not twisted. Work patt (p2 k2) around for 9-15 [11-18] rounds, or, for the turtleneck, for 30-45 [35-55] rows, starting with one size larger needles, if desired, and switching to the pattern needles halfway through. On last round, put markers before 1st [1st], after 10th [10th], after 40th [48th], and after 50th [58th] stitch. Stop 2 stitches before the first marker
Then, to establish the garment pattern: k2, (1st marker), p2, k2, p2, k2, p2, (2nd marker), k2, p2, *k6, p2* 3  times, k2, (3rd marker), p2, k2, p2, k2, p2, (4th marker), k2, p2, *k6, p2* 3  times
Upper garment. Each round for the upper body ends 2 stitches before the first marker. For "inc1" use invisible lifted increase (http://www.wonderful-things.com/newknit4a.htm) or any other increase. The pattern is k6p2.
R1: inc1, k2, (marker), p2, k2, inc1, patt, inc1, k2 p2, (marker), k2, inc1, patt, inc1, k2, (marker), p2, k2, inc1, patt, inc1, k2, p2, (marker), k2, inc1, patt
R2: k2, (marker), p2, k2, patt, k2 p2, (marker), k2, patt, k2, (marker), p2, k2, patt, k2, p2, (marker), k2, patt
Alternate R1 and R2 (ending w R2) for a total of 28  rounds -- until there are 58  st between the markers on the back (and also front) – and 38  st on each sleeve.
Do R1, R2, R2, R2 four times ? for a total of 44  upper garment rounds. There are now 66  st on the back (and front) and 46  on each sleeve.
Do R2 until the upper body is long enough to reach 2" below the underarm. (Underarm seam should lie 2" below the actual underarm.) Then (to prepare for the sleeves):
k2, (marker), p2tog, k2, patt, k2, p2tog, (marker), k2, patt, k2, (marker), p2tog, k2, patt, k2, p2tog, (marker), k2, patt
Lower garment: k2 to reach the first marker. Slip the stitches between the first and second markers (sleeve) onto a spare circular needle or some scrap yarn. Using single cast on, cast on 14  stitches. Work patt (k6p2) across the back to next marker, ending with k2. Slip the stitches between the third and fourth markers (sleeve) onto a spare circular needle or some scrap yarn. Cast on 14  stitches. Work patt (k6p2) across the front to marker, ending with k2. The last 6 stitches worked are p2k4 [k2p2k2].
Work patt (k6p2), starting w k2, p2, k6 [k4, p2, k6], until garment is 2" shy of desired length. Do not switch to a smaller needle.
Work 1 row of (k2, k2tog, k2, p2). Then work (k2, p1, k2, p2) for 14  rounds. Bind off.
Sleeves: (There are 44  stitches in scrap.) To start the sleeve: With the garment right side out, identify the 14  stitches that were cast on at the bottom of the sleeve opening. (Using a crochet hook,) pull yarn from the nearest scrap stitch through the top of the right-most of these stitches and then place the stitch back in scrap. Do the same for the left-most stitch. Slide a double-pointed needle --or a 16" circular needle -- into the garment to the right of the sleeve opening (to keep the needle from slipping). Pull yarn through the tops of the 12  remaining underarm stitches and slide onto the needle (making sure that the long end of the yarn is behind the needle). (Pull the yarn from back to front through the top of knit stitches, and from front to back for purl stitches.) (There are now 12  stitches on the needle and 44  stitches in scrap.)
Work the k6p2 pattern around, starting with k1, p2 [k2, p2]. There are 56  st on sleeve.
Work k6p2 around until sleeve reaches wrist. For a tighter sleeve, decrease 1 st every 10 rows 8 times. (At the end of these decreases there would be 48  st on sleeve.)
Then k2p2k2p2 for 14  rounds. Bind off.
Work the other sleeve the same way. Weave in all loose ends, and the garment is complete.