Ive been driving my s60 2.4 for about a year now and I am wanting to get a little more power out of the motor and/or the turbo itself. Is there a way I could purchase a t5 turbo, remove the turbo in the 2.4, and put in the new T5? If this is possible i would also like to know if this is a direct bolt on job or would i need to replace the head for a lower compression ratio?

If you could find a direct replacement you should be fine with the head you have.
You might have to get the computer reprogrammed though.
The T-5 might bolt up Im not 100% sure.I haven't really messed with upgrading turbo's.

just get an ecu upgrade and it will be as fast as a stock t5
ipd usa
speed tuning usa
bsr

Just put a 3" mandrel bent downpipe on your car and a 2.5"-3" mandrel bent catback system with a free flowing muffler such as BORLA or Magnaflow. And an ECU upgrade and you will be plenty happy.

You're wallet will be happier, too...;)

But yeah, exhaust and ecu upgrade will give you noticeably more power for much cheaper.