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:
Your Answer is vague and confusing.
Yes - I believe you can take it - but you must put theinformation in and only upto 2000
If the retirement is listed on the W2 in box 12 then the program will automatically calculate the savers credit if you qualify. There's an income phase out for this credit so you might not be eligible for it. Review the form 8880 to see if you are qualified.