Yes, it counts. However, this retirement is listed on the W-2 and is already taken into account for the Saver's credit. In the Saver's credit area you only list retirement contributions made outside of your employer such as IRA's.
The saver's credit has low income requirements.
For more detail on the Saver's credit see:
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-save...
