An air taxi pilot on the TEB RUUDY TWO set 4;000 in the altitude alerter after confusing his expected final clearance altitude of FL400 on the TOLD card with the SID initial altitude of 1;500 FT.

Narrative

I copied clearance on TOLD card during aircraft pre-flight. I wrote down the expected altitude :10 minutes after departure as 400 onto the TOLD card. During cockpit set up I misinterpreted the expected altitude as the initial climb to altitude and thus placed 4;000 into the aircraft altitude alerter. To prevent recurrence; when a departure altitude is determined from a SID; I will always write down the initial climb altitude from the departure plate onto my TOLD card. By having both the initial climb altitude and the expected final altitude on the TOLD card; there will be no room for misinterpreting the altitudes. This will also allow for consistency of operations as most airports provide both the initial altitude and climb to altitude and thus the TOLD card reflects both. To further reduce the chance of error; the following check and balance will be incorporated into my flights: The pilot who sets up the airplane for departure will interpret the climb to altitude from the departure plate and the other pilot will review the plate to make sure he/she determines that altitude to be correct.