Their names were announced on Tuesday, as were the Flamingos, soul singer Solomon Burke, and sidemen Johnnie Johnson and James Burton.
Jackson first made it into the Hall of Fame as one of the Jackson Five. Simon made his first appearance there as one half of Simon and Garfunkel.
The Rock and Roll Hall of Fame's annual announcement of its inductees was presented live for the first time on VH1 in New York City.
VH1's Rebecca Rankin introduced Rolling Stone editor and publisher Jann Wenner who announced the 2001 Hall of Fame inductees.
On their web site, Steely Dan founders Donald Fagen and Walter Becker wrote a humorous statement in anticipation of either being accepted into the Rock and Roll Hall of Fame or "passed over again." They said if they were inducted it would be "the icing on the cake" of their careers.
CBS and VH1 are both part of the Viacom family.