This note considers a discrete-time linear system under nested saturation. Nested saturation arises, for example, in systems with actuators subject to both magnitude and rate saturation. A condition is derived in terms of a set of auxiliary feedback gains for determining if a given ellipsoid is contractively invariant. Moreover, this condition is shown to be equivalent to linear matrix inequalities (LMIs) in the actual and auxiliary feedback gains. As a result, the estimation of the domain of attraction for a given set of feedback gains is then formulated as an optimization problem with LMI constraints. By viewing the feedback gains as extra free parameters, the optimization problem can be used for controller design.